Japan Govt Raises Assessment Of Capital Spending

(RTTNews) - Japan's government on Friday left its overall view on economy unchanged but raised its assessment of capital investment.

The Cabinet Office repeated that the Japanese economy is on a moderate recovery trend, while some weak movements are seen lately due to a reaction after a last-minute rise in demand before a consumption tax increase.

Business investment is increasing, the report said. But it lowered the view on industrial output, saying industrial production is in a weak tone.

The Bank of Japan this week upgraded its assessment of capital expenditure as corporate profits improved.

The government today noted that private consumption showed weakness lately due to higher demand ahead of sales tax increase. Exports also remained flat.

Nonetheless, corporate profits are improving and the firms' judgment about the immediate future is also improving, it said.