Tokyo, Oct 16 (TIWN) The Japanese government on Friday retained its overall assessment for the economy in October as "picking up, although the pace has weakened" due to the severe situation caused by the Covid-19 pandemic.

However, the Cabinet Office said that exports were "increasing at a slower pace" instead of "increase moderately" in September, downgrading exports' assessment for the first time in seven months.  A government official told reporters that the impact of supply chain disruptions due to surging COVID-19 cases in Southeast Asia had dragged down the industrial output of Japan, resulting in relatively sluggish exports of many items, including auto-related products and electrical devices since July.  The assessment for the industrial production component stayed as "picking up, although some weakness is seen recently," according to the office, after a downgrade last month as the supply chain issue and a global semiconductor shortage had forced some Japanese automakers to reduce output. 

The government revised down its assessment for public investment component for the first time in six months, saying it has been "in a weak tone recently, although it is at a high level," as the number of public work orders received was sluggish due to budget cuts for reconstruction projects related to the massive 2011 earthquake and tsunami in northeastern regions.  Assessments of other major components were unchanged in October.