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- Japan cuts economic view on weaker production, spending due to COVID revival
Japan cuts economic view on weaker production, spending due to COVID revival
Reuters reports that Japan cut its economic view for the first time in four months as a surge in COVID-19 cases disrupted manufacturers' global supply chains and dampened consumer confidence.
"The economy continued picking up amid severe conditions due to the coronavirus, but the pace has recently been slowing," the government said in its September report.
Among key economic elements, authorities downgraded their view of production for the first time in 17 months, and private consumption for the first time in four months.
"Automobile production weakened lately ... as parts supply shortages due to COVID-19 outbreaks in Southeast Asia have had material impacts on carmakers," a government official told reporters before the cabinet approved the report.
Domestically, declining sales of new cars and household electronics showed that consumers are turning more cautious and keeping their purse strings tight not just for services but also for goods, the report said.
The government upgraded its view on home construction given growing demand for suburban houses and rental rooms in cities.
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