MNI: Japan's Economy Picking Up; Public Investment Solid -Govt

Japan's government maintained its broad economic assessment for a fifth straight month but lowered its assessment on public investment for the first time since October 2021, the Cabinet Office said on Thursday.

“The Japanese economy is picking up moderately,” the report said, repeating last month's assessment. The government said public investment is solid. The previous view was that solid public investment had increased.

The assessment of other economic components was unchanged from the previous month. Despite the elevated level rise of consumer price index, the government repeated its assessment that “consumer prices are rising.” The government also left its assessment on overseas economies unchanged, saying “the world economy continued recovering moderately.”

The report maintained its optimistic view on the near-term outlook, saying that the economy is expected to show signs of picking up, supported by the effects of policies “under the new normal.”

However, it warned that the “slowing down of overseas economies is a downside risk for the Japanese economy amid ongoing global monetary tightening and other factors.” “Also, full attention should be given to price increases, supply-side constraints and fluctuations in the financial and capital markets,” it also said.