The Japanese government this morning upgraded its assessment of the economy for the first time in eight months, citing a turnaround in capital spending, but warned of the negative impact of a looming war in Iraq.
'While the economy has become more or less flat, uncertainty is increasing due to the situation surrounding Iraq,' the Cabinet Office said in a monthly economic report for March.
The assessment was more upbeat than the previous month when the economy was described as weakening despite signs of recovery in some sectors.
