TOKYO (Kyodo)--The government on Wednesday upgraded its assessment of the Japanese economy for the second month in a row and deleted the phrase meaning deterioration from its report for the first time in seven months, citing signs of recovery in exports and industrial production. ''While the economy is in a difficult situation, movements toward picking up are seen in some areas,'' the Cabinet Office said in its monthly report for June, in the latest indication that the worst of the recession may be over. The government had used the expression indicating a downturn to describe the state of the economy since last December. In May, it said, ''While the economy is in a difficult situation, the pace of deterioration has become moderate,'' raising its overall economic assessment for the first time since February 2006. In the previous three months, it said the ''economy is worsening rapidly while in a severe situation.'' In its June report, the office said the prospects for the economy amid the harsh employment situation are ''likely to remain severe for the time being.'' http://www.nni.nikkei.co.jp/e/fr/tnks/Nni20090617D17JF869.htm Wow, what a difference in wording...
Manufacturers' Confidence Rises 3rd Month Running In June TOKYO (Nikkei)--Business sentiment among manufacturers improved for the third straight month in June due to progress with inventory adjustments, according to a survey by QUICK Corp. The diffusion index for manufacturers -- calculated by subtracting the percentage of companies reporting poor business sentiment from those citing good conditions -- rose one point on the month to minus 39 in June. The diffusion index for nonmanufacturers came to minus 13, slipping two points on the month. "Because of uncertainties with the global economy, firms lack confidence in the strength of the recovery," explains Yasuo Goto of Mitsubishi Research Institute. However, the diffusion index based on how manufacturers see conditions changing over the next three months came to minus 19. The forward diffusion index for nonmanufacturers also signals an improvement. This is because "the rebound in production, led by automakers, is unlikely to stall suddenly," says JPMorgan Securities Japan Co.'s Masaaki Kanno. The survey was conducted from June 1 through Sunday, with responses received from some 400 listed companies and financial institutions.