TOKYO, Aug. 27 (Xinhua) -- The Japanese government said on Wednesday that the improvement in Japanese corporate profits "appears to be pausing" due to the impact of higher U.S. tariffs on automakers and other manufacturers.
"The effects caused from the U.S. trade policies and so on are seen in some areas," the Cabinet Office said in its monthly report for August, as it lowered its evaluation of corporate earnings for the first time in eight months.
Last month, the Cabinet Office said profits were improving, though "attention should be given to the effects of trade issues."
Meanwhile, the report maintained its overall view that the domestic economy is "recovering at a moderate pace," supported by strong business investment, particularly in digitalization among non-manufacturers.
The Cabinet Office said exports were "almost flat," leaving its assessment unchanged from the July report.
Among other key economic areas, private consumption, which accounts for more than half of the Japanese economy, was also maintained, though the report noted that "the improvement in consumer sentiment is slow." ■