MNI POLICY:Japan Govt Keeps Econ Outlook Unch; Trims Jobs View

     TOKYO (MNI) - Japan's government on Friday left ITS overall economic

assessment unchanged from the previous month, saying, Japan's economy is

"recovering at a moderate pace while weakness is lasting longer mainly in

exports."

     But the government downgraded its assessment of corporate profits for the

first since February 2019 and employment situation for the first time since

November 2014.

     "Corporate profits are in a weak tone, mainly manufacturers, although they

remain at a high level," the government said. The previous view was that

corporate profits remained solid at a high level.

     "The employment situation is improving," the government said. Previously,

it said that employment situation is improving "steadily."

     Despite weak export data, the government left its assessment of exports,

repeating, "Exports are in a weak tone." The assessment of private consumption

was also maintained. "Private consumption is picking up."

     The government downgrade its assessment of overseas economies, saying that

the global economy is recovering moderately as a whole but the pace is slowing."

The downward revision is the fist since August 2019.

     The previous view was the global economy is recovering moderately as a

whole but there were weak moves in Asia and Europe."

     As for the near-term outlook, the government maintained its optimistic

view, saying, "Weakness remains for the time being, but the economy is expected

to continue recovering, supported by the effects of the policies, while

employment and income situation is improving."

     The government warned on it, saying, "However, attention should be given to

situations in overseas economies including the tension over trade issue, the

prospect of the Chinese economy and the outcome of the UK leaving the EU, the

effects of fluctuations in the financial and capital markets, and the situations

of the consumer sentiment after the consumption tax increase."

     The latest GDP data showed that Japan's economy posted a fourth straight

quarterly gain in the July-September period, up 0.1% q/q, or an annualized

+0.2%, boosted by stronger capital investment and solid household spending.

     But growth slowed from Q2's levels, which rose a revised 0.4% q/q, or an

annualized 1.8%.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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