MNI BRIEF: Govt Keeps Japan Economic View; Ups Corp Sentiment

Japan's government has kept its main economic assessment steady for the third straight month, but upgraded its assessment on corporate sentiment and public investment, the Cabinet Office said on Wednesday.

The government also left its assessment on major economic components, such as exports, industrial production and private consumption, and on overseas economies, repeating, “the Japanese economy is recovering at a moderate pace.”

It upgraded the assessment on corporate sentiment for the first time since December 2022, noting “firms’ judgments on current business conditions are picking up” following the improvement of business sentiment in the Bank of Japan Tankan survey, a shift from the previous view that it “shows movements of picking up.”

The government said public investment continued to move steadily, the first upward revision since August 2022. The previous view was that it moved firmly.

As for the near-term outlook, the government maintained its optimistic view, saying it expects the economy to continue recovering at a moderate pace with employment and income improving, supported by the effects of policies.

However, the government maintained its cautious view, repeating “slowing down of overseas economies is downside risk of the Japanese economy amid ongoing global monetary tightening and other factors. Also, full attention should be given to price increases and fluctuations in the financial and capital markets."