The government on Wednesday revised its basic assessment of the economy for January upward, the first rise in eight months, noting a sign of improvement in new car sales and a positive impact from a weaker yen.
While the economy "has shown weakness recently due to deceleration of the world economy, signs of bottoming out can be seen in some areas," the Cabinet Office said in a monthly report.
The report was the first to be compiled by the government led by Prime Minister Shinzo Abe's Liberal Democratic Party, which regained power last month. Abe has put priority on ending deflation and advocates strong monetary easing.