The Cabinet Office economic report was released yesterday, and overnight the Japan Times ran their take on it:

  • The government on Monday upgraded the economy for the first time in two months by deleting the word “weak” from its description
  • The economy “is picking up slowly,”
  • Upgrades were applied to 2 of the 14 categories it uses: exports, industrial output and corporate earnings
  • The Japanese economy is in a mild deflationary phase
  • Exports show signs of picking up
  • Amari comments: “We decided to upgrade the economic assessment” because the economy is “on a V-shaped recovery path,”
  • Amari: “But capital spending has remained negative,”
  • Amari: “It is important to create an environment where business investment rapidly turns positive”

A solid, if unspectacular report on the economy. The markets will note this, but most attention is on monetary policy, JGB wild swings, and yen. The BOJ meets today and tomorrow, with an announcement tomorrow – I’ll have more on this coming up.