Despite its report this week saying the economy may be contracting, there is not much the government can do with limited funding resources, causing citizens to further tighten their belts.
The Cabinet Office on Tuesday revised downward its assessment of the coincident activity index for September to "signaling a possible turning point" toward contraction.
The downswing appears to stem chiefly from two fronts, one external and one internal: slumping exports on weak activity overseas, including the key market of China amid the bitter Senkakus territorial row, and stifled consumer spending domestically on anxiety about increased tax and other financial burdens.