Japan raises economic view in August for first time in 15 months

TOKYO / WAM

The Japanese government on Thursday upgraded its assessment of the economy for the first time in 15 months, citing a modest rebound in private consumption, Kyodo News reported.
In its monthly report for August, the Cabinet Office described the economy as “recovering at a moderate pace, although it appears to be pausing in part.”
The government used the same expression for the sixth straight month through July that the world’s fourth-largest economy is “recovering at a moderate pace.”
The upward revision came after a 3.1 percent growth in Japan’ real gross domestic product
during the April-June period, marking the first increase in two quarters.
The growth was helped by a rebound in private consumption, a key driver of Japan’s economic growth, as the resumption of auto shipments at a Toyota Motor Corp. group firm made it easier for some consumers to buy cars.
Private consumption, which accounts for more than half of the economy, “shows movements of picking up recently, while weakness remains in some sectors,” according to the report. The upward revision for private consumption was also the first in 15 months.
Extreme summer heat lifted the sales of air conditioners, while consumer spending was also bolstered by robust sales of TV sets in time for the Paris Olympics, which ran through mid-August, a government official said.