Japan cabinet office upgraded its economic assessment for the second consecutive month. However, the office said that the situation remains severe as the country gradually reopens.
This was an improvement from May’s ‘extremely severe’ economic assessment when the Asian nation was reopening after a nationwide state of emergency. The economy is picking up after covid19 pandemic havoc that pushed the economy into a technical recession.
In its monthly report released on Wednesday, the cabinet office said that there was an improvement in 6 out of the 14 economic subcategories. The categories showing improvement include consumer spending, exports, production, and public investment. Sectors that failed to record improvements in July include capital spending, corporate profits, bankruptcies, and employment.
Industrial production picked up in some sectors but it is declining as a whole while corporate profits are decreasing sharply. The office was quick to blame flooding in southern Japan that forced Toyota Motor Corp and other manufacturers to suspend some production. The manufacturing purchasing manager’s index (PMI) improved in July.
The government remained worried about coronavirus resurgence in major cities such as Tokyo which may weigh down consumer sentiment.
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