The Cabinet Office’s monthly economic report, February edition: January, reloaded

February 20, 2007
By Ken Worsley

Japan’s Cabinet Office released its monthly economic report yesterday, but you’d be forgiven for missing it. Not much seems to have changed from a month ago, and writing this report still seems like the easiest job in the government. As the Bank of Japan was about to hunker down for the February policy meeting, here’s what the Cabinet Office had to say:

The economy is recovering, despite some weakness in consumption.

Corporate profits are improving and business investment is increasing.

The employment situation is improving on a broader basis, though some severe aspects remain.

Private consumption is almost flat.

Exports are levelling off and industrial production is increasing moderately.

As for short-term prospects, the economic recovery is expected to continue supported by the domestic private demand as high corporate profits currently observed feed into the household sector. On the other hand, attention should be given to an effect which developments of oil prices in particular have on both domestic and overseas economies.

I read a suggestion elsewhere that this report was designed to put ’silent pressure’ on the BOJ as it decides whether or not to raise interest rates. I suppose that’s possible, if they faxed 1,000 copies of it over there at the same time…

Filed Under Cabinet Office, Economic Reports, Economics