TOKYO- The government on Thursday painted a brighter picture of the Japanese economy for the first time in six months, citing recovery in private consumption and business investment.

The economy is on a "moderate recovery" path, the government said in its economic report for June, which was compiled by the Cabinet Office and submitted to the day's meeting of relevant ministers by Economic and Fiscal Policy Minister Nobuteru Ishihara.

Last month, the government noted moderate economic recovery and "delayed improvement" in some sectors. This month, the reference to the delayed improvement was dropped.

The more upbeat view came as the continuing upward momentum of the country's economy, led by the corporate sector, has spread to private consumption, a Cabinet Office official told a press briefing.

Private consumption is "picking up," said the report, giving a better assessment for the first time in three months.

The sector's improvement was led by brisk demand for durable goods, such as automobiles, and travel and other services, the official said.

Personal spending has "room for further improvement," as the employment and income situation is getting better, the official added.

The latest economic report also revised up the government's view on business and public investment, as well as housing construction.

Business investment is "picking up," the report said. Demand in domestic and foreign markets has been supporting investment both in the manufacturing and nonmanufacturing industries, the official noted.

Looking ahead, the government maintained the projection that the country's economy is expected to recover moderately.

The government did not change its evaluation of the global economy, stating that it is on moderate recovery, while giving a better view on the eurozone economy, including Germany. (Jiji Press)