Prime Minister Yoshihiko Noda attended a meeting of the Ministerial Council on Monthly Economic Report and Other Relative Issues at the Prime Minister's Office.

The Monthly Economic Report for May assesses the current state of the Japanese economy, stating that "The Japanese economy is on the way to recovery at a moderate pace, reflecting emerging demand for reconstruction, while difficulties continue to prevail."

On prospects for the economy, it states "Concerning short-term prospects, reflecting emerging demand for reconstruction, movements toward sound economic recovery in the Japanese economy are expected to take hold. However, there are downside risks that could stem from sharp fluctuations in the financial and capital markets, and further slowing down of overseas economies caused by the growing uncertainty about the prospects of the Eurozone debt crisis. It should also be noted that there is still a risk of constraints of electric power supply, of oil price hikes, and the adverse effects of deflation on the economy."