Japan on Thursday maintained its view that the economy is recovering moderately, as solid pent-up demand for services following the lifting of COVID-19 curbs continued to support private consumption despite accelerating inflation.
The Cabinet Office retained the assessment for the fifth straight month in its economic report for November, while continuing to warn of volatility in financial markets following the yen's sharp decline relative to the U.S. dollar.
Its assessments on all but one component of the economy, ranging from exports to corporate spending, were retained. Public investment was the exception, which saw a downgrade.