Japan Lifts View of Economy Again, But Says Situation Still Grim
Japan Lifts View of Economy Again, But Says Situation Still Grim
(Bloomberg) -- Japan’s government upgraded its assessment of the economy in July for a second month, saying conditions are picking up even as they remain severe amid reopening from coronavirus shutdowns.
In its monthly report released Wednesday, the Cabinet Office said it saw improvement in 6 out of 14 economic categories, including consumer spending, exports, production and public investment.
The government described overall conditions as “severe,” compared with “extremely severe” a month earlier when Japan was just starting to reopen from a nationwide state of emergency.
Japan Manufacturing PMI Improves as Services Index Stalls
Still, the government said it didn’t see improvement in July for capital spending, corporate profits, bankruptcies or employment. The jobs market is weakening and business income is falling quickly due to the virus’ impacts, it said.
The report also flagged the impact of heavy rain this month that forced Toyota Motor Corp. and other manufacturers to suspend some production in southern Japan.
The government’s latest economic appraisal comes amid other indications the worst of the recession may be over. The Bank of Japan last week left its main policy levers unchanged for a second month, a sign it has shifted away from peak crisis-fighting mode.
Still, record numbers of Tokyo infections in recent days have spurred new travel advisories and stricter restrictions could follow. Japan’s virus czar, Yasutoshi Nishimura, this week said cases among the elderly are rising and Tokyo Governor Yuriko Koike is considering urging residents to avoid unnecessary outings during an upcoming four-day weekend.
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