MNI BRIEF: Japan Govt Keeps Overall Economy; Ups Corp Profits

Japan's government kept its main economic assessment from the previous month in September for the fifth straight month but upgraded its view on corporate profits for the first time since March 2022, the Cabinet Office said on Tuesday.

However, the office lowered the assessment on housing investment for the second straight month.

“The Japanese economy is recovering at a moderate pace,” the government repeated. It also said that corporate profits “are improving as a whole.” The previous view was that corporate profits are improving moderately as a whole.

“Housing investment is weakening recently,” it said, although the government previously said that housing investment is flattening.

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

However, the government maintained its cautious view, repeating “slowing down of overseas economies is [a] downside risk to the Japanese economy, including the effects of global monetary tightening" and repeated concerns on the Chinese economy.”

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

As for overseas economies, the government repeated the world economy is recovering, although some weakness has been in some regions.