Japanese Govt Cuts View On Economy For First Time In 20 Months

Discussion in 'Economics' started by ASusilovic, Oct 19, 2010.

  1. TOKYO (Dow Jones)--The Japanese government cut its view on the economy in October for the first time in over a year and half because weakened demand from Asian nations has cut into the nation's industrial output.

    "The economic momentum appears to be entering a lull recently," the government said in its monthly economic report released on Tuesday, downgrading the assessment for the first time since February 2009.

    A Cabinet Office official briefing reporters said the negative revision was mostly due to slowdown in the Chinese economy, which damaged business activity in other Asian nations and in turn reduced their demand for Japan-made products.

    "Shipments have been weakening recently, and the latest data clearly showed industrial output has worsened," the official said.