The Japanese government is set to upgrade its economic assessment for the first time in six months in a report to be announced next week, government sources said on Thursday. The sources said the July economic report, expected to be released after a meeting of government officials next Tuesday, will use slightly stronger wording to describe the recovery and will cite improvements in conditions for ordinary households. "The economy is recovering firmly, with improvements in the corporate sector spreading to households," said a draft of the July report obtained by . The headline statement in the June report had said the economy continued to recover "steadily" and did not cite improvements in households' economic conditions. The sources said the report will also say that personal consumption is "increasing moderately". In June it had simply said it was recovering.
The report will also cite a global rise in interest rates as a risk, omitting its June reference to rising oil prices, the draft showed. Japan's economy has been growing at its fastest pace in over a decade. Gross domestic product rose over six percent in real annualised terms in the two quarters to March, mostly boosted by strong demand from Japan's major trading partners -- China and the United States. Economic data has also shown the improvement is filtering through to households and consumers are beginning to loosen their purse strings after years of worrying about jobs and sinking incomes. Economists say employment and salaries have not actually recovered much, but consumers are beginning to feel more confident as share prices recover, deflation eases and companies post higher profits.///www.reuters.com