Japan Govt Cuts Economic View On Spending, Industrial Output
Japan’s government downgraded its view on the economy for the first time in three months, citing weaker consumer spending and industrial production.
In the February monthly report released Wednesday, the Cabinet Office said, “The Japanese economy is recovering at a moderate pace, although it recently appears to be pausing.”
Last week, official data showed that the economy had slipped into a recession in the fourth quarter of 2023. Japan lost its position as third largest economy.
GDP decreased 0.4 percent from a year ago after a 2.9 percent contraction in the third quarter. With two quarters of negative output, the economy entered a technical recession.
The government today cut its view on both consumer spending and industrial production. The government said private consumption appears to be pausing for picking up.
Further, the office said industrial output was on the way to picking up, but manufacturing activities declined recently due to the interruptions in production as well as exports by some automotive manufacturers.
The office repeated that the economy is expected to continue recovering at a moderate pace with the improving employment and income situation.
Also, it reiterated that full attention should be given to price increases, developments in the Middle East and fluctuations in the financial and capital markets.
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