MNI: Japan Cuts Overall Economic View, Spending, But Ups Capex

Japan's government lowered its monthly main economic assessment for the first time since September 2021 along with private consumption, but upgraded its views on capital investment, the Cabinet Office said on Thursday.

The Cabinet Office said the Japanese economy “continues to show movements of pickup up, although some weaknesses are seen as a severe situation due to the Novel Coronavirus remains,” see: MNI BRIEF: Japan Cabinet Ups Industrial View, Cautions On Virus.

The assessment on private consumption was also lowered, saying it “appears to be pausing” after picking up recently.

However, the government upgraded its assessment on capital investment as it "shows movements of" picking up, for the first upward revision since April 2021.

The assessment on other major components was largely left unchanged.

As for the near-term outlook, the government warned, “full attention should be given to the further increase in downside risks due to the effects of the spread of Novel Coronavirus and supply-side constrains and raw material prices.”

"Attention should be given to the effects of fluctuations in the financial and capital markets," the assessment said.