The government on Wednesday downgraded its basic assessment of the economy as production weakens amid a slowdown in China and other emerging markets.
The world's third-largest economy is "on a moderate recovery, while weakness can be seen in some areas," the Cabinet Office said in its monthly report, citing sluggish industrial output in addition to already weakening exports.
The downgrade came after the government effectively slashed its assessment last month, saying "slowness can be seen in some areas" such as private consumption and exports. It retained the view that the economy remains on a moderate recovery path.