The Japanese government on Thursday upgraded its assessment of the economy for the second month in a row. It also noted further improvement in the country's exports and industrial production.
"The Japanese economy is picking up steadily," the Cabinet Office said in its June monthly report, upgrading its assessment from May when it said the economy is "picking up slowly."
Exports are showing movements of picking up and industrial production is also improving, the report said. Corporate profits are improving, mainly among manufacturers.
Business investment is leveling off, while there are signs of improvement in firms judgment on current business conditions.
Private consumption is picking up, the report pointed out. Employment situation is also improving, although some "severe aspects" still persisted, it added.
The government expects the recovery to resume in the short-term as the improvement in the corporate profits leads to increase in household income and business investment.
The effects of the recent policies actions by the government and the Bank of Japan, along with improving exports, are also expected to support economic recovery.
However, weakness in overseas economies still remained a downside risk, the report added.
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