Report: Worst is past for economy

The government on Wednesday effectively declared that the economy has bottomed out, citing signs of recovery in industrial production and exports.

In its monthly economic report for June, the government dropped the word "worsening" for the first time since December in its assessment for the state of the economy.

The report said that while "the economy is in a difficult situation," signs of recovery were apparent in some areas.

It is the second straight month that the government has revised its assessment upward. The report for May had said "the tempo of worsening (of the economy) has become moderate."

Kaoru Yosano, minister for economic and fiscal policy, told a news conference there was strong ground for presuming the economy had reached the bottom in the January-March period.

In April, the industrial production index rose 5.9 percent from the previous month, the second-highest increase on record.

The government's pump- priming measures, such as subsidies for the purchase of eco-friendly vehicles and appliances, are beginning to drive stronger consumer spending.

However, the jobless rate continues to rise and the ratio of job offers to job seekers is at its lowest level.

In addition, summer bonuses are expected to fall as much as 20 percent from last year at large companies.(IHT/Asahi: June 18,2009)