The government is likely to improve its view on the economy in March for the first time in eight months, with corporate profits and production improving on the back of a pickup in exports, sources close to the matter said Friday.
The government, however, may refrain from expressing optimism about private spending in its monthly economic report to be released Monday, as it has remained sluggish in the wake of last April's consumption tax hike, the sources said.
The Cabinet Office said last month: "The Japanese economy is on a moderate recovery, while weakness can be seen in private consumption."
The government last upgraded its basic economic assessment in July, but downgraded it in September and October as data showed the 3 percentage-point tax hike to 8 percent continued to drag down domestic demand.