MNI: Japan Govt Overall Economy View Unchanged

Japan's government left its main economic assessment unchanged for the second straight month but raised its assessment on industrial production for the first time since January, the Cabinet Office said on Tuesday.

Comparing the economy against last month, the government said the "Japanese economy is picking up moderately”, adding that "Industrial production shows movements of picking up” following the rise of the July production (+9.2% m/m for the first rise in three months).

The previous assessment was that the “pick-up in Industrial production appears to be pausing.”

The government also lowered its assessment on global economy for the first time since May, saying that the pace of the world economic recovery is slowing. The previous view was that the world economy is recovering, although a standstill is seen in one region.

As for the near-term outlook, the government maintained its optimistic view, saying that the economy is expected to show movements of picking up, supported by the effects of the policies while all possible measures are being taken against infectious disease, and economic and social activities proceed to normalization.

The government, however, said that the “slowing down of overseas economies due to global monetary tightening and other factors is a downside risk of the Japanese economy.”

Pointing to price pressures and higher inflation, the government said "full attention should be given to the impact of price increases on households and businesses and supply-side constraints.”