In its June monthly report, the Japanese Cabinet Office raised its economic assessment in June for the first time since 2018, as the economy is seen bottoming from the coronavirus impact.
“Although the economy remained in an “extremely severe situation” due to the coronavirus pandemic, it had “almost stopped worsening.”
“The economy is still on a slightly downward trend but the sharp deterioration has ended,”
“The government upgraded its view on consumer spending for the first time since January 2018, noting signs of improvement as retailers and restaurants re-opened.”
“The government also raised its assessment on business sentiment for the first time since April 2017, saying it was showing signs of picking up too after a service sector sentiment index rose for the first time in May.”
“The government kept its view on exports, saying they were “falling rapidly” and factory output was also falling.”
The upbeat assessment had little to no impact on the yen markets, as USD/JPY extends its range trade around 106.90. The spot trades almost unchanged on the day.