According to the monthly economic report by Japan’s Cabinet Office, the economy is “recovering at a moderate pace,” but there was “weakness continuing mainly in exports.” Asia bound exports were particularly poor due to China’s slowdown and weaker demand for high-tech products. .
Nevertheless, the reference to weakness in “industrial production” in the June report was dropped. Instead, production of “transport goods continued to increase, while the decline in machinery production could be seen easing a little,”
Businesses show “cautiousness further” but investment is still “on the increase at a moderate pace”. Also, employment situation is “improving steadily” while private consumption is “picking up”.
