The government on Monday retained its assessment of the Japanese economy as recovering moderately despite some stalling, taking a more upbeat view on production after output picked up following a drop due to a data-rigging scandal in the auto sector that dragged on economic growth. The Cabinet Office said moderate economic growth will continue, but warned of the negative effects of inflation, the conflict in the Middle East and developments in currency and other capital markets. “Industrial production shows signs of picking up recently, although manufacturing activities declined due to the eff…