Japan upgrades its economic outlook for a 3rd straight month

FXstreet.com (Barcelona) - Japan's government released its monthly economic report, highlighting once again that the economy continues to show signs of a self-sustaining recovery.

The top headlines included the raised economic assessment for a 3rd consecutive month, further evidence that deflation is abating, a more optimistic view on Capex for the first time in 4 months, raised prospects on factory output as well as business sentiment as confidence strengthens due to a more competitive exports industry on a much cheaper yen.

According to the Japanese Cabinet Office in its monthly economic report on Tuesday: "The economy is steadily picking up and it shows some movement towards a self-sustainable recovery. Recent price developments indicate that deflation is easing."

However, there is much work to be done before a more robust recovery is achieved, the Cabinet Office said, adding "we need further recovery in firms' capital spending and the income situation."

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