TOKYO, June 20 (Xinhua) -- Japan's government on Monday maintained its assessment that the country's economy is picking up as the downside effects of the coronavirus pandemic begin to wane and private and business spending picks up.
The government's monthly report said the Japanese economy "shows movements of picking up," owing to increases in private consumption and business investment.
The government's assessment remained unchanged for a third straight month owing to the improvements.
The monthly report dispensed of the word "coronavirus" in May and said that the economic recovery is expected to be supported by measures against infectious diseases and business and social activities normalizing.
Private consumption shows movements of picking up, it said, for a third straight month, owing to consumers increased spending in the services and travel sectors, although the nation's industrial output remained subpar.
"Any pickup is pausing due to weak production of electronic components and construction machinery amid a shortage of semiconductors," the government said regarding factory output, in a downgraded assessment for the first time in seven months.
Increased domestic demand for crude oil, liquefied natural gas and coal, led to an upgrade in the government's assessments on imports.
Consumer prices, meanwhile, "have been rising recently" for the second successive month owing to inflation in April increasing at the fastest pace in seven years, due to higher commodity prices and a weaker yen, the government also said.
"Full attention should be given to downside risks due to rising raw material prices, supply-side constraints and fluctuations in the financial markets," the government added regarding its economic outlook.
As for the global economy, the government here maintained its assessment stating, "It appears to be pausing in some parts but is picking up as a whole." ■