MNI BRIEF: Japan Govt Keeps  Economic View; Cuts China Outlook

Japan's government maintained its main economic assessment in August from July – the fourth consecutive straight month – but lowered its assessment on China's economy for the first time since January 2023, the Cabinet Office revealed Monday.

The government upgraded its assessment on exports for the first time since May 2023, but left other major economic components steady, such as industrial production and private consumption.

“The Japanese economy is recovering at a moderate pace,” the government repeated. “Exports show movements of picking up recently.” The previous view was “exports have shown a steady undertone.”

The government noted China's economic recovery had stalled. The previous view was that the Chinese economy showed signs of recovering.

As for the near-term outlook, the government maintained its optimistic view, saying that the economy is expected to continue recovering at a moderate pace with the improving employment and income situation, supported by the effects of policies.

However, the government maintained its cautious view, saying slowing down of overseas economies is downside risk of the Japanese economy, including the effects of global monetary tightening and "the concern about the prospect of the Chinese economy."

“Also, full attention should be given to price increases and fluctuations in the financial and capital markets,” the government said.