TOKYO: The Japanese government kept its basic economic assessment unchanged in a monthly report released Monday.

“The Japanese economy is recovering at a moderate pace, although it recently appears to be pausing,” the government said in the May report, adopting the same view for the fourth straight month.

The government revised up its assessment on industrial production for the first time in 12 months, now saying that the sector “shows movements of picking up recently.” In the April report, it said that industrial production “was on the way to picking up.”

The upward revision reflected the resumption of operations at automobile factories that had been halted in due to testing scandals at some companies as well as a recovery of production at electronic parts factories damaged in the Jan. 1 Noto Peninsula earthquake in central Japan.

The government made an upward revision to its assessment of public investment in response to an increase in public works deals. Its assessment on imports was also raised.

Elsewhere, reflecting the yen’s depreciation and rising copper prices, the government said that corporate goods prices were rising slowly after noting flat moves last month.

The assessments for all other categories were kept unchanged.

Looking ahead, the government said that the Japanese economy is “expected to continue recovering at a moderate pace,” thanks to wage hikes agreed in this year’s “shunto” spring wage negotiations.

The government, however, warned, “Full attention should be given to price increases, the situation in the Middle East and fluctuations in the financial and capital markets.”

JIJI Press