Japan lowers its economy assessment for the first time in 10 months

The Japanese government lowered its assessment of the economy for the first time, in 10 months, as the country struggles during a new state of emergency to deal with a winter increase in coronavirus cases.

In its monthly report for February, the Cabinet Office continued to describe overall conditions as improving from a sharply low level, but said consumer spending was weakening, again, according to Bloomberg News.

The downgrade of the assessment is a possible indication that Prime Minister Yoshihide Suga may pave the way for a reduction in economic stimulus, while harnessing his hopes that conditions can improve enough to allow the Tokyo Summer Olympics to take place.

The government lowered its forecast for private consumption for the first time since last October, reflecting the damage caused by the state of emergency, which was called for to contain the virus in Tokyo and other major urban areas.

Ratings of capital spending, imports and corporate revenues rose amid improvement in foreign trade, especially with China.

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