TOKYO (Reuters) – The Japanese government said in its monthly economic report that the economy was “rebounding moderately”, with an overall assessment unchanged from the previous month and an upward revision to factory output.
While sounding cautiously optimistic about the world’s third-largest economy, the government has warned that households face slowing wage growth, while the global economy remains optimistic amid trends abroad of tightening monetary policy and rising inflation. warned of the risk of setbacks.
The Cabinet Office, which compiled the report, said, “The economy is recovering moderately.” Stated. .
The report was approved by Cabinet members of Prime Minister Fumio Kishida on Thursday.
The government has revised up its view on factory output in August as China’s coronavirus lockdown eased helped production rebound from the declines seen in April and May.
Factory output showed signs of recovery compared to July, when production appeared to be stagnant, the report said. First upgrade in 7 months.
Ratings of other major components of the economy were unchanged from the previous month.
Private consumption, which accounts for more than half of Japan’s economy, is recovering moderately, the report notes, with activity resuming among consumers “living with the coronavirus” after COVID-19 restrictions are lifted. I mentioned that it was done.
“A downturn in the global economy, triggered by global monetary tightening, is emerging as a risk of putting pressure on the Japanese economy,” the report said.
We need to pay close attention to the impact of supply constraints and price hikes on households and businesses.”
Japan’s economy recovered from the COVID-19 slump at an annual rate of 2.2% from April to June.
Still, the pace of growth is below the median economist forecast, raising questions about the strength of private consumption and hopes of pent-up demand, known as revenge spending. (Interviewed by Tetsushi Kajimoto, edited by Tomasz Janowski)