For the first time in two months the government raised its assessment of the Japanese economy, pointing to the increase in exports and a weakening yen.
In its monthly economic report for May Office of the Cabinet of Ministers indicates that the Japanese economy is slowly picking up speed. The report of the Office of the previous month said that the economy is showing signs of recovery, but it still has weaknesses.
In the report published on Monday reported that exports indicates a return to growth. According to officials, this contributed to the depreciation of the yen and increase the supply of vehicles to the U.S. market.
Another positive sign is the increase in industrial production. As a result of the growth in demand from the automotive sector increased output of steel mills.
The report also noted improvement in corporate profits, in particular, large corporations.
As pointed out by officials, even though the economy is still in a state of deflation, the situation is changing. The report states that consumer prices continue to decline, but the process has slowed down. One reason for this is the increase in the prices of imported goods by the weakening of the yen.