This will surely add more fuel to the debate over whether to still go through with the proposed sales tax hike in October
The first downgrade was seen in March as reported here at the time. The government downgraded its assessment of industrial production again, saying that conditions have deteriorated amid continued weakness in exports.
However, it is the first time since September 2016 that they have also downgraded the business investment outlook. That said, the overall report still suggests that the Japanese economy continues to recover at a moderate pace but the assessment downgrades will without a doubt raise some eye brows after Abe's comments earlier today.
