The government kept unchanged its monthly economic assessment for July, saying Wednesday the recovery has lost some momentum and downside risks have emerged in the United States on top of Europe, which has been riddled with sovereign debt woes, but one official suggested the nation is in a "lull."
In the monthly report, the Cabinet Office said, "Although the economy has been picking up steadily and the foundation for a self-sustaining recovery is being laid, difficult situations remain, including a high unemployment rate."
The government retained the assessment for the second month in a row, after a modest upgrade the previous month when the word "recovery" was used for the first time in two years.