Japan govt. says economy recovering, warns of rising costs

Jun 20 (NHK) - The Japanese government has kept its overall assessment of the economy unchanged for the third straight month. Officials say there are signs of an upturn, but called for caution against rising raw material prices amid the prolonged conflict in Ukraine.

The economic report for June upgraded the assessment for residential construction, citing steady demand for condominiums for rent or sale.

The assessment for imports was also raised due to a recovery in purchases from China. That comes after an easing of pandemic restrictions in Shanghai. The report said the decline in imports has stopped.

The report, however, downgraded the assessment for production, saying signs of recovery appear to be stalling. It cited reductions in automobile output due to parts shortages.

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