Japan Govt Keeps Economic View Unchanged in June

June 19, 2018

Tokyo- The Japanese government kept intact its overall assessment of the domestic economy for the fifth straight month in June, according to a monthly report released Tuesday.

"The Japanese economy is recovering at a moderate pace," the government said in the report, which was submitted to a meeting of economic ministers the same day.

It referred to a recent Finance Ministry quarterly report showing that total recurring profits at Japanese firms hit a record high of 81.4 trillion yen in fiscal 2017, with both manufacturers and nonmanufacturers enjoying growth.

With the improvement of corporate earnings, both salaries and investments are increasing, said an official of the Cabinet Office.

The official, however, said that a rise in personnel costs due to a labor shortage has affected profits in the transportation and communications sectors.

The government's assessment was unchanged for all sectors of the economy. Exports are "picking up," and business investment and industrial production are "increasing moderately," the monthly economic report said.

While the government maintained its assessment on private consumption as "picking up," the official noted that consumer sentiment among households with members aged 60 and over has reached a standstill on the back of rising prices of daily goods and services, including gasoline and electricity.

Looking ahead, the report said that the economy is expected to "continue recovering," supported by policy measures and an improvement in the employment and income situations.

On the effect on the economy of the 6.1-magnitude earthquake that hit western Japan on Monday morning, the official said the government "will pay a great deal of attention" and analyze information on the damage caused by the quake. Jiji Press