Tags: Japan | economy | Assessment | government

Japan’s Government Cuts Economic Assessment Again

Thursday, 11 Oct 2012 10:18 PM

Japan’s government cut its assessment of the nation’s economy for a third straight month, the longest streak since the 2009 global recession.

“The economic recovery is in a weak tone recently due to deceleration of the world economy,” the Cabinet Office said in its monthly report for October released in Tokyo. The cut in the government’s assessment marks the longest run of downgrades since the five months through February 2009.

The report underscores concern that Japan’s economy may contract as global demand slows and the expiry of government subsidies for car purchases weakens consumer spending. The International Monetary Fund this week revised down its estimate of world growth for this year, while JPMorgan Chase & Co. and Morgan Stanley predict Japan’s economy will shrink for two consecutive quarters through the end of December.

Japan’s government also cut its view on industrial production for a third month, while it lowered its assessment of business conditions for the first time in 10 months.

“Industrial production is decreasing,” the government said. “Firms’ judgment on current business conditions shows cautiousness,” mainly among manufacturers, the report said.

The Bank of Japan’s Tankan survey last week showed that large manufacturers became more pessimistic as slowdowns in China and Europe sapped export demand and pushed the nation closer to an economic contraction. Production fell more than economists’ forecast in August.

The government also said the uncertainty over the economic prospects of the euro region and Asia, notably China, “remains high.”

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Japan's government cut its assessment of the nation's economy for a third straight month, the longest streak since the 2009 global recession.
Japan,economy,Assessment,government
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2012-18-11
Thursday, 11 Oct 2012 10:18 PM
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