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 August assesses the current state of the Japanese economy, stating that "The Japanese economy is on the way to recovery at a moderate pace partly due to reconstruction demand, while some weak movements are seen recently."

On prospects for the economy, it states "Concerning short-term prospects, movements toward economic recovery in the Japanese economy, which would be influenced by the decelerating overseas economy for the time being, are expected to continue due to reconstruction demand to some extent. However, further slowing down of overseas economies and sharp fluctuations in the financial and capital markets under a high degree of uncertainty about the prospects of the Eurozone debt crisis, are downside risks of the Japanese economy. It should also be noted that there is still a risk of constraints of electric power supply and the adverse effects of deflation on the economy."