Tokyo, Sept. 29 (Jiji Press)–The Japanese government kept its basic economic assessment unchanged in a monthly report released on Tuesday, while remaining vigilant against the impact of continuing tensions in the Middle East and recent natural disasters in Japan. “The Japanese economy is recovering at a moderate pace, while attention should be given to the effects caused from the situation in the Middle East and natural disasters,” the Cabinet Office said in the September report, using the same wording for the second consecutive month. The government noted that households in Japan have become increasingly cost-conscious amid rising prices, highlighting the importance of providing support for daily necessities. Referring to the spread of food price hikes due to the worsening Middle East situation, the government stressed the need to be wary of a potential increase in the burden on households. In the latest report, the government revised up its assessment on industrial production for the first time in 28 months, saying that it “shows movements of picking up as a whole” amid growing global demand for artificial intelligence and semiconductors. Last month’s report described the sector’s movements as “flat.” Meanwhile, the government downgraded its view on public investment for the first time in nine months, after stating in the previous report that it showed “steady performance.” Additionally, the government changed its wording on the balance of goods and services trade for the first time in eight months, saying that it is in the red. The previous report said that it was “in near equilibrium.” The change reflects rising imports due to progress in procuring oil from outside the Middle East, a Cabinet Office official said. Elsewhere in the September report, the government mentioned the Bank of Japan’s decision this month to raise its policy interest rate to 1.25 pct. Looking ahead, the government maintained its economic outlook, saying that “the improvement in the employment and income situation and the effects of the policies are expected to support a moderate recovery.” Still, the report noted the government’s concerns over the Middle East situation and domestic natural disasters, as well as volatility in financial and capital markets. END [Copyright The Jiji Press, Ltd.]
