The government's economic report for December states that Japanese economic conditions are "worsening," a downgrade from the previous month's assessment that "the economy has weakened further." The term "worsening" was used for the first since February 2002, after the information-technology bubble had burst.
The report comes as official recognition of the increasingly gloomy economic prospects. No wonder a comment by economic and fiscal policy minister Kaoru Yosano is not encouraging. He said, "The worsening of the Japanese economy will continue for the time being and there is the possibility that production cuts and employment adjustments will spread."
The report also has reduced ratings for corporate profits, capital spending and housing starts. It represents the lowering of the assessment of the economy for the third straight month.