The government on Friday downgraded its basic assessment of the economy for the second straight month, citing slower production and weakening private consumption amid the global economic downturn, increasing the likelihood of fresh stimulus measures.
"The economic recovery (following the March 2011 earthquake and tsunami) appears to be pausing due to deceleration of the world economy," the Cabinet Office said in its monthly report. In August it said only that "some weak movements have been seen recently."
Five of the 14 components were revised lower this month, including industrial output, which has been "in a weak tone," and consumption, which is "almost flat" but showing some weakness. Business investment, corporate profits and bankruptcies were also lowered.