The government compiled its monthly economic report for May and raised its assessment of the underlying trend of the economy to "recovering moderately," taking into account the growth in demand for food service and automobiles. It has been three years and three months since the expression "gradual recovery" was used.
At the relevant ministerial meeting on the 25th, the government compiled its monthly economic report for May.
Accordingly, the Bank raised the assessment of the underlying trend in the economy as a whole to "recovering moderately."
This is the first time in 5 months since July last year that the baseline assessment has been raised.
In addition, the expression "gradual recovery" is used for the first time in three years and three months since February 7, before the spread of the new coronavirus.
Looking at individual items, "private consumption" was "picking up" due to strong new vehicle sales and an increase in eating out consumption by the elderly,
which had been slow to pick up.
In addition, the usage of bullet trains and airlines during the long holidays has recovered to pre-Corona levels, and personal consumption is shifting from the Corona disaster to normal times, such as events that have been held in various places where self-restraint has continued.
In addition,
"production" "shows signs of a pick-up," as the number of transportation equipment such as automobiles is increasing amid easing global supply constraints such as semiconductors.
As for the outlook, while employment and income are expected to improve and the economy is expected to continue recovering moderately, there is a risk that downside fluctuations in overseas economies will exert downward pressure on Japan's economy amid continued global monetary tightening.