The Japanese government said in its monthly economic report that amid signs of improved consumption, it had decided to raise the economic assessment. This was the first improvement in the economic assessment since May 2023.
"The Japanese economy is recovering at a moderate pace, although it appears to be still pausing in parts," the Cabinet said, adding that consumption is growing amid mitigation of the effects of supply stoppages from some automakers and an increase in household disposable income.
According to official data, Japan's GDP grew by 3.1% per annum in the 2nd quarter, offsetting the decline in the 1st quarter (-2.3% per annum), and exceeding economists' forecasts (+2.1% per annum). It was the strongest yearly expansion since Q2 of 2023, mainly supported by a strong rebound in private consumption. In quarterly terms, the economy expanded by 0.8% after contracting by 0.6% in the 1st quarter. Economists had expected GDP growth of 0.5%. It was the strongest quarterly growth since Q1 of 2023.
Meanwhile, the government said today that it expects import prices to fall due to the recent correction of the national currency. As for the housing assessment, it has been upgraded to "almost flat" from "in a weak tone". This was the first improvement in the housing assessment since May 2023.