Japan maintains modest economic recovery view in September

The Japanese government maintained its assessment of the economy as modestly improving, driven by solid domestic demand, but warned of downside risks from slowing Chinese growth and global monetary tightening.

In September, the same evaluation was utilized for the sixth month in a row, and for the first time since March 2022, the Cabinet Office raised its forecast for business earnings, stating they are “increasing overall,” according to “Kyodo.”

However, rising material costs caused the opinion on house building to be downgraded to “poor” for the second month in a row.

The Japanese economy expanded for the third consecutive quarter in April–June, but experts predict the pace will drop in the current quarter to September.

The government intends to release a new economic package in October to help people and companies cope with the impact of inflation.

In the monthly report, the Cabinet Office used the same phrase that consumer prices are “increasing,” while it now claims wholesale prices have been “flat” recently, up from “declining” in August.

The report included analyses of other significant economic components. Both private spending and capital investment are “on the rise.” Exports, which have assisted the current economic rebound, have begun to “pick up.”