TOKYO (Kyodo) -- The government on Thursday retained its assessment that the Japanese economy is recovering moderately, expressing a more optimistic view about the current business environment.

In its monthly report for January, the Cabinet Office said the economy is "recovering at a moderate pace, although it remains pausing in part," using the same expression for its overall assessment for the sixth consecutive month.

The Cabinet Office revised upward its evaluation for corporate bankruptcies for the first time since September 2024.

In its latest report, the government said that the number of business failures has been "almost flat," replacing the description that the pace of increase was "slowing."

In recent years, businesses hit hard by the COVID-19 pandemic faced difficulties repaying interest-free loans provided by the government as part of relief measures.

The Cabinet Office made no changes to its evaluations of other key components such as private consumption, which accounts for more than half of the nation's gross domestic product, and exports.

The report kept unchanged the assessment of the global economy for the seventh consecutive month, saying it is picking up despite signs of pause in some areas.