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Japan lowers economic assessment for first time in 10 months

The Japanese government has lowered its economic assessment for the first time in 10 months, highlighting a slowdown in business investment as a key concern. According to the Cabinet Office’s November report, there is a pause in the otherwise moderate economic recovery. This revision, the first in 23 months, reflects a gap between strong investment sentiment and actual expenditure, with rising costs causing delays. The report also notes a consecutive quarterly drop in business investment, particularly in machinery and semiconductor equipment. Additionally, private consumption of goods, especially durable ones, has declined due to inflation and sluggish vehicle sales. Despite these challenges, the overall private consumption, driven by services, remains steady. The government continues to anticipate a moderate recovery and plans to execute its new economic package to stimulate growth.


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