Japanese economy shows signs of moderate recovery

The word"recovery"has disappeared from the Japanese Financial Ministry's (MOF) quarterly report on economic situation for nearly six years, while it arose again on Wednesday's report. "Japan's regional economy is on the way to recovery at a moderate pace,"said the third-quarter report of 2013 on the world' s third largest economy. Out of 11 regions, seven were upgraded, including Kanto centering on Tokyo and Tokai in central Japan, where Toyota Motor Corp. is headquartered. The overall assessment has been lifted by MOF for three consecutive quarters, with Japan's economy boosted by strong exports and rebounded consumer spending. According to a separate report released by the Ministry of Internal Affairs and Communications on Tuesday, Japan's average monthly household spending in September rose a price-adjusted 3.7 percent on yearly basis to 280,692 yen. Meanwhile, the average monthly income of salaried households and consumer prices in the reporting period were also upgraded. Separately, some other figures also showed positive signs. The Cabinet Office said Tuesday that Japan's unemployment rate in September improved 0.1 percentage from 4.1 percent in August to 4. 0 percent. Another official figure released Wednesday showed Japan's industrial output in September increased by 1.5 percent on a seasonally adjusted basis. Still, some major companies of Japan's big car and electronic makers have recently sounded upbeat on net profits. Honda Motor Co. said Wednesday its group net profit rose 13.5 percent from a year earlier in April-Sept. period to 242.87 billion yen. Toshiba Corp. also said the day it has raised group operating profit and sales forecasts for the business year ending next March. The electronics maker now expected an operating profit of 290 billion yen, up 49.9 percent from the previous year, on sales of 6. 3 trillion yen, up 8.6 percent. Supported by the surge of stock market, Japan's two major brokerages, Nomura Holdings Inc. and Daiwa Securities Group Inc. said their profits in the April-September period grew sharply from a year earlier. Yet, the mood in Tokyo among businessmen and economists remains precariously balanced between enthusiasm for the monetary and fiscal stimulus unleashed by Abe and worry that promised structural reforms might not be implemented. Some analyst believed"structural reforms"is the most important part of Abenomics. If it cannot be implemented,the economy recovery will lack sustained motive force.