TOKYO (Thomson Financial) - The Japanese government will downgrade its assessment of the economy for the first time in 10 months in September due to weaker consumer spending and capital investments, the Nikkei business daily reported on Thursday.
The move comes after gross domestic product for the April-June quarter declined in real terms for the first time in three quarters, hit by weakness in corporate capital spending and slower growth in consumer spending.
In the September report, the government will characterize personal spending as flat, down from the prior month's view that "private consumption is picking up," Nikkei said, without citing sources.
The government will also cite weakness in capital investment amid a general upward trend, down from the view in August that it was increasing.
The September report will maintain the outlook that "the economic recovery is expected to continue," but also mention the need to monitor the impact of the US economy and crude oil prices on the Japanese and overseas economies.
The Cabinet Office is scheduled to release its latest economic assessment tomorrow.
(1 US dollar = 114.16 yen)
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