Japan govt raises economy view for first time in 3 yrs

The revision followed an upbeat view last week from the Bank of Japan, which also raised its assessment of the economy, saying a rebound in global demand could mean last quarter's record 4.0 percent contraction was the worst of the recession. But the government echoed a cautious tone on the outlook sounded by the central bank's governor while cutting its assessment of jobs conditions in a monthly report. It said the employment situation was severe and worsening rapidly. "While the economy is in a difficult situation, the tempo of worsening has become moderate," the government said in the report, upgrading its overall assessment for the first time since February 2006. Previously, the government had said the economy was worsening rapidly and in a severe state. "As for short-term prospects, with a worsening employment situation, the economy is likely to remain severe for the time being," the report said.