The government on Monday raised its assessment of the economy for the first time in more than three years, citing a gradual pickup in external demand and falling corporate inventories, possibly indicating the worst of the recession is over.
"While the economy is in a difficult situation, the tempo of worsening has become moderate," the Cabinet Office said in its monthly economic report for May.
It is the first time since February 2006 the government has upgraded its overall assessment of the economy, abandoning the wording it used over the past two months, when it said, "The economy is worsening rapidly while in a severe situation."