MNI POLICY: Japan Govt Eco View Unchanged; Spending, Capex Cut

Japan's government on Thursday left its economic assessment unchanged for the third straight month in September, with the latest report suggesting the Japanese economy "is still in a severe situation due to the Novel Coronavirus, but it is showing movements of picking up recently."

The government upgraded its assessment of exports and production, both for a third consecutive month, as global economies restart.

"Exports are picking up," the report said. The previous view was "exports show movements in picking up." It also said that industrial production "shows movement of picking up."

CUTS CONSUMPTION

The government lowered its assessment on private consumption for the first time since April, and on capital investment for the first since May. Private consumption is picking up, although "weakness can be seen in some sectors," the latest report said.

It also said that business investment "is showing weakness."

The government largely left its near-term outlook unchanged, saying that the economy is expected to show movements of picking up, supported by the effects of the policies and improvement in overseas economies while the socio-economic activities will be resumed with taking measures to prevent the spread of infectious disease.

It also said, "However, attention should be given to "domestic and overseas infections and the effects of fluctuations in the financial and capital markets."