Japan says economy is picking up

TOKYO (Bloomberg) -- The Japanese government said the economy is “picking up,” keeping its assessment unchanged for a fifth month.

The world’s second-largest economy is recovering even though it is “short of autonomous factors” and conditions are “difficult,” the Cabinet Office said in a monthly report in Tokyo on Tuesday.

The government said the economy will continue to expand as overseas economies improve and Prime Minister Yukio Hatoyama’s 7.2 trillion yen ($79 billion) stimulus package is deployed. Hatoyama’s Cabinet unveiled the emergency spending on Dec. 8, which included measures to lift the job market and help small companies obtain credit.

The Cabinet Office said that while business sentiment is improving, small and midsize firms are “cautious” about the outlook. Confidence at small manufacturers will worsen in March from December, the Bank of Japan’s Tankan survey showed last week.

The government lowered its assessment of capital spending, saying it is showing “weak” signs. Businesses cut spending on plant and equipment at a record pace last quarter, a Finance Ministry survey showed this month.

Japan remains in a “mild deflationary phase,” the report said for a second month. The government will work together with the central bank to fight deflation and ensure the economic recovery continues, it said.

   Print Version     |        Back    |     Send To Friend