The Japanese government downgraded its economic view for the first time since last October as it sees risks from slowdown in China and normalization of interest rate in the U.S.
In its monthly report, the Cabinet Office said Friday the economy is on a moderate recovery, while slowness can be seen in some areas.
The government said it will closely monitor the fluctuation in financial markets.
The government retained its view on consumer spending, saying private consumption holds firm as a whole. It said business investment is picking up and exports are weak, unchanged from prior report.
Meanwhile, it raised assessment of corporate profit. Corporate profits are improving, the government said.
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