The Japanese government says the nation’s economy is recovering at a moderate pace, but it notes that the recovery has paused in some areas.
The government’s economic report for September says personal consumption shows signs of picking up, although it remains subdued.
The report noted that real wages grew for the second straight month, but an improvement in consumer sentiment has stalled.
The government kept its assessment unchanged for business investment and industrial production.
It says there are signs of an upturn in capital investment, with non-manufacturers giving software-related investments a boost.
The government also held onto its view of industrial output, saying many industries enjoy strong sales even after passing on higher costs to retail prices.
Looking ahead, the report highlights the need to keep an eye on risks to other economies, such as China’s struggling real estate market. It also urges monitoring the impact of price hikes and developments in financial markets.