Japan’s government upgrades economic assessment for first time since May 2023

The Japanese Cabinet Office said in its monthly report on Thursday, the government upgraded its economic assessment for the first time in more than a year.

Key takeaways (via Reuters)

“The Japanese economy is recovering at a moderate pace, although it appears to be still pausing in parts.”

“Consumption is picking up as the impact of shipping stoppage at some automakers is easing.”

“The government also upgraded its assessment on housing construction ‘to almost flat’ from ‘in a weak tone’ for the first time in more than two years, attributing the change to a halt in the decline of owner-occupied house construction.”

“Assessments for the remaining sub-sectors, including exports, remained unchanged.”

Market reaction 

The Japanese Yen erases losses against the US Dollar following the upbeat report. At the time of writing, the USD/JPY pair is trading flat on the day at around 144.60.

Source: https://www.fxstreet.com/news/japans-government-upgrades-economic-assessment-for-first-time-since-may-2023-202408290925