Japan gov't maintains economic view for 6th straight month

Source: Xinhua| 2017-11-28 23:06:10|Editor: Mu Xuequan
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TOKYO, Nov. 28 (Xinhua) -- The Japanese government maintained its view for the sixth straight month in November that the economy is recovering moderately, according to a report released on Tuesday.

In its monthly report for November, Japan's Cabinet Office maintained its view that the economy is "on a moderate recovery," owing to increases in private consumption, capital spending and exports.

Private consumption, which accounts for almost 60 percent of Japan's gross domestic product, is "picking up moderately," the Cabinet Office said, adding that business investment, industrial output and exports are all "picking up."

The government, however, also noted that attention should be given to uncertainties in overseas economies and the effects of fluctuations in the financial and capital markets.

Despite the improving employment and income situation, domestic demand, particularly private consumption, is still far from robust, the report noted.

Toshimitsu Motegi, Minister in charge of Economic Revitalization, said that the positive signals showed that the economy was on track of getting rid of deflation, though lukewarm growth in wages and consumption prices in service sector still hamper the economy.

Local economists also warned about the negative impacts caused by a series of misconducts of major Japanese manufacturers, including data falsification improprieties involving Mitsubishi Materials Corp. and Kobe Steel Ltd., and uncertified safety checks carried out by Nissan Motor Co. and Subaru Corp. which led to extensive recalls.

"We will be watching carefully the longer-term impacts of the scandals," an official at the Cabinet Office was quoted as saying by local media.

The government also maintained for the eighth straight month that the global economy has been "moderately recovering."