TOKYO, Jan. 23 (Xinhua) -- The Japanese government has maintained its assessment of the economy in its monthly economic report, stating that the economy is "gradually recovering, despite some signs of stagnation."

The Cabinet Office highlighted that while consumer spending continues to face challenges due to rising prices of rice and vegetables, disposable incomes have increased as a result of wage hikes, contributing to a gradual recovery in dining out and other forms of consumption.

Corporate production remained steady, with demand for semiconductor manufacturing equipment staying strong, leading the government to assess production as "flat."

Meanwhile, capital investment continues to recover, driven by the adoption of digital technologies and software. Employment conditions also showed signs of improvement, though labor shortages persist.

Looking ahead, the government urged caution over potential risks to economic stability, including the policy direction in the United States, rising inflation, and geopolitical tensions in the Middle East. ■