The upward revision will reflect solid personal spending, the sources said.

In its May report, the government said that the economy "is on a moderate recovery," while referring to "delayed improvement" in some sectors.

As personal consumption has been picking up, the government is seen removing the phrase, "delayed improvement," from its basic economic assessment in the June report.

Economic and Fiscal Policy Minister Nobuteru Ishihara is scheduled to submit the June report at a meeting of relevant ministers on Thursday.

The synthetic consumption index, a gauge used by the Cabinet Office to track personal spending trends, stood at 105.5 in April, the highest level since April 2014, when Japan raised its consumption tax to 8 pct from 5 pct.

In the June report, the government is expected to paint a brighter picture of personal expenditures, the sources said. (Jiji Press)