Japan's economic recovery is "solid" but export growth is losing some steam, according to the government’s monthly report published this week.
“The economy is recovering at a solid pace,” with industrial output healthy and joblessness on the decline, the Cabinet Office said in its upbeat September report.
But it added that exports – the economy's main engine of growth – are now only "rising slowly," from "increasing" in August.
The Bank of Japan held onto its assessment that consumer prices continue to edge lower, implying that it was unlikely to tighten monetary policy in the near future. The report was unchanged from August.
Despite signs that Japan's economy is recovering, the central bank has remained concerned about deflation – a continual drop in prices that brings down profits and economic activity – which has plagued Japan for more than five years.
