Japan outlook optimistic as machinery orders surge

The Bank of Japan and the Japanese government have upgraded their assessment of the Japanese economy. From an AFP report:

"The economy is recovering slowly but steadily. But it's hard to say exactly when an economy will emerge from a lull. But I am almost certain that the economy is emerging from the soft patch," Bank of Japan governor Toshihiko Fukui told a news conference...

The economy is "recovering at a moderate pace, with the corporate sector as well as the household sector improving," the government said in a report for August, which was approved by Prime Minister Junichiro Koizumi's cabinet.

The latest data on machinery orders support this upgrade.

In another strong sign of recovery, the Cabinet Office said orders of machinery jumped 11.1 percent month-on-month in June on strong demand for chip manufacturing equipment and mobile phones, marking the first rise in three months. It was also the first time in seven months that core orders, which exclude volatile orders from electric utilities and for ships, posted double-digit growth, it said.

However, there was no change in the Bank of Japan's stimulative monetary policy.