MNI: Japanese Govt Keeps Econ View, Ups Imports, Manufacturing
Japan’s government maintained its economic assessment in May for a fourth straight month, saying recovery continues at a moderate pace, but upgraded its assessment on imports and industrial production for the first time since April 2023 and May 2023 respectively, the Cabinet Office said on Monday.
Imports are largely flat and industrial production “shows signs of picking up,” though manufacturing declined due to suspensions of production and shipments by some automobile manufacturers.
The previous view was that imports were weakening and industrial production on the way to picking up.
The government maintained its optimistic near-term view, saying recovery should continue at a moderate pace with improving employment and incomes, supported by official policies.
It maintained its assessment for overseas economies for a 13th straight month, saying the world economy is recovering, despite weakness in some regions.
However, it repeated that it saw downside risks from slowing overseas economies, pointing to the effects of global monetary tightening and concern over prospects for the Chinese economy.
“Full attention should be given to price increases, the situation in the Middle East and fluctuations in financial and capital markets,” it said.
“In addition, full attention should be given to the economic impact of the 2024 Noto Peninsula Earthquake.”