TOKYO, Oct. 27 (Xinhua) -- The finance ministry on Tuesday said that in the July to September quarter, Japan's economic conditions improved, marking the first time the bank has posted a second consecutive rise since 2004, on the back of improving conditions in the manufacturing sector.

    The quarterly report released by the ministry was not all positive, however, with employment remaining tough in some regions, worsening in others and drastically worsening in Hokuriku.

    The ministry cited growing production of electronics and automobiles as the main contributors to the economy. It noted, however, that stimulus measures both at home and abroad had contributed to the improvement. With many nations now beginning to roll back measures put in place to resuscitate the economy.

    Seven of the 11 areas surveyed for the report - Hokkaido, Tohoku, Tokai, Chugoku, Shikoku, Kyushu, Fukuoka and Okinawa -- said that while economic conditions were still difficult, they had either stopped worsening or had improved slightly, while in Kanto, Hokuriku, and Kinki, the situation remained difficult.

    The report was cautious, however, citing a need to watch such areas of the economy as the financial markets, foreign economic conditions and changes in employment.

    The report is in line with others that have been released from Japan since September, which have showed that while the manufacturing sector is posting small improvements, household spending and wage levels remaining low.

    Japan has suffered from difficult economic conditions since the credit crisis that emerged from the United States last year, leading to high unemployment, wage cuts and plummeting business confidence. The government of Prime Minister Yukio Hatoyama has made improving the economy one of its top priorities.

Special Report:  Global Financial Crisis