The government downgraded its economic assessment for the third straight month Friday, citing the slowing of production activities, which had been fueling the fragile recovery.

"While movements of an incipient recovery can be seen in some areas of the economy, the state of the economy has weakened somewhat," the Cabinet Office said in its report on the state of the economy for January.

In the December report, the office said, "Movements toward an incipient recovery are weakening, and the economic trend is generally flat."