In the monthly economic report for August, the government maintained its judgment that the economy is "recovering moderately," which it raised in July for the first time in three months.
On the other hand, there is a heightened sense of caution about the downturn in overseas economies due to the tightening of global monetary policy.
On the 25th, the government held a meeting of related ministers and compiled the monthly economic report for August.
In this situation, regarding the "production" of companies, the severe restrictions on going out have been lifted in Shanghai, China, and the decrease in automobile production due to the shortage of parts supply has been largely resolved. I raised my judgment for the first time in a while.
On the other hand, although "personal consumption" is recovering due to summer vacation trips and homecomings, we maintain the judgment that "consumer spending is recovering moderately" because the consumer's willingness to purchase continues to decline due to rising prices.
For these reasons, we maintained our view that the economy as a whole is recovering moderately, which we raised in July for the first time in three months.
On the other hand, as for the future, there is a heightened sense of vigilance that a downturn in overseas economies due to global monetary tightening will pose a risk to the domestic economy.
In addition, it is necessary to pay close attention to the impact of price increases on households and firms.