Tokyo, Oct. 27 (Jiji Press)–The Japanese government Tuesday upgraded its view on companies’ judgments on current business conditions for the first time since December 2023 while keeping its basic economic assessment unchanged. “The Japanese economy is recovering at a moderate pace,” the government said in a monthly economic report for October, adopting the same language as in September. Regarding the current business sentiment, the government said the sector shows movements of picking up after noting flat performance in September. Business sentiment continues to improve particularly in the manufacturing industry, supported by robust demand related to artificial intelligence systems and semiconductors. The view on private consumption, a pillar of domestic demand, was kept unchanged, saying that it “shows movements of picking up.” Business investment was viewed as “picking up,” also unchanged. Meanwhile, the government downgraded its view on exports for the first time in 15 months, citing signs of deceleration in Asia, the United States and Europe. It said that their movements of picking up, seen until last month, “appear to be pausing.” The Cabinet Office, which compiled the monthly report, thinks that food price hikes have been accelerating since late September. Citing rising costs stemming from the deteriorating Middle East situation and moves to pass the higher costs to sales prices, the Cabinet Office showed concerns about a slowdown in household consumption caused by price hikes for food and daily goods. END [Copyright The Jiji Press, Ltd.]
