MNI: Japan Govt Keeps Economic View, Tweaks Corp Goods Price
MNI (TOKYO) - Japan’s government left its overall economic assessment and view of major economic components, such as private consumption, exports and capital investment, in September, the Cabinet Office revealed on Wednesday.
But the government tweaked its assessment on the corporate goods price index, saying “the rising tempo is slowing,” the first tweak since May 2024. The previous view was that CGPI was rising moderately.
Japanese economy is recovering at a moderate pace, although it appears to have pause in part for the second straight month, the government noted.
Private consumption also shows movements of picking up recently, despite being on pause "in parts," it added.
An official at the Cabinet Office clarified “in part” referred to weak domestic travel and sluggish consumer sentiment, although inbound tourism was solid.
The government said business investment shows movements of picking up, while exports remained almost flat.
While consumer prices stayed at a higher level, the government left its assessment, saying “consumer prices have been rising moderately” for the ninth straight month.
NEAR-TERM OUTLOOK
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 the effects of policies.
However, it maintained its cautious view, saying slowing down of overseas economies presented a downside risk to the Japanese economy, including the effects of continued high interest-rate levels in the U.S. and Europe and “the lingering stagnation of the real-estate market in China.”
“Full attention should be given to price increases, the situation in the Middle East and fluctuations in the financial and capital markets,” the government added.
It left its assessment on overseas economies for the third straight month, noting that overseas economies are recovering, although stagnation is observed in some regions.
However, the government lowered its assessment on eurozone economies, particularly Germany.