Weakness remains for the time being although Japanese economy continues to recover

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The Japanese government released October's monthly economic report on October 18 which summarized that the economy has been recovering moderately, although exports continue to be weak.

This assessment was revised downward from that of the previous month. The downward revision is the first in 5 months.
In addition to the delay in the recovery of exports due to the global economic slowdown, the report emphasized downside risk of the economy in light of the consumption tax hike and the effects of Typhoon which hit Japan causing heavy damage especially in the Kanto region this month.
This is the third time the government has revised its economic assessment downward this year, following March and May.
The biggest factor of slowing economy is the slump in exports and production.
As for export volume, export of semiconductors seems to have stopped declining but export of capital goods such as machine tools, automobiles and auto parts continues to decline dragging down overall industrial production. 
The business sentiments of companies continue to be getting cautious, especially in the manufacturing industry.
In addition, the report pointed out that it is necessary to pay close attention to the impact of the October consumption tax hike on the consumer sentiment and successive natural disasters such as Typhoon on the economy.

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