- says it’s in moderate recovery trend with impact of sales tax easing
- factory output weakening due in part to effects of sales tax hike
Cabinet office monthly report just published
- prolonged effects of sales tax hike and weaker overseas economies could pose downside risks to economy
- raises view on housing construction, saying pace of declines is moderating
- cuts view on corporate profits ,saying improvement appears to be stalling
Largely unchanged but previous reports described industrial output as weakening ” recently”, following a boost in demand before the sales tax rose to 8% from 5%. In this report the govt has dropped the “recently” to sound more cautious on factory output.Eamonn had the heads-up on the more cautious view here
USDJPY 103.86 still with July’s industrial production data due this Friday
