TOKYO (MNI) – The Japanese government on Tuesday left its overall
economic assessment unchanged in its monthly report for September after
upgrading it last month, but it warned about slower overseas economic
growth.
“The Japanese economy is picking up while difficulties continue to
prevail due to the Great East Japan Earthquake,” it said.
“The economy is expected to continue to pick up, reflecting supply
chain reconstruction and effect of policy measures.”
But the government warned that Japan still faces downside risks: a
further slowdown in overseas economies; domestic power supply
constraints; the yen’s continued strength; and weak share prices.
The global economy is “weakening on the whole,” it said, noting in
particular slower growth in the U.S. and European economies.
It repeated its request that the Bank of Japan “support the
economy by appropriate and decisive monetary policy management while
working closely with the government.”
While the government said housing construction shows signs of
picking up, a Cabinet Office official said the pace of the latest
increase is not sustainable.
Housing starts posted a fourth straight year-on-year rise in July,
surging 21.1% to 83,398 units, the highest level in more than two years,
as demand surged before the government ended a reward program for
building energy-saving homes in July.
The government said corporate profits have decreased, based on the
results of the latest quarterly survey by the Ministry of Finance.
Combined current profits of non-financial firms dropped 14.6% y/y
in the April-June quarter in the aftermath of the March 11 disaster,
posting the first fall in seven quarters and the largest drop since
-32.4% in Q3 of 2009.
tokyo@marketnews.com
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