Japan's government stuck to its assessment that the economy is recovering firmly but slightly downgraded its view on exports and output due to slower economic activity in China and the United States.
Exports and industrial production were rising at a moderate pace, the government said. Last month, the government said exports and output were increasing.
A Cabinet Office official attributed the downgrade in exports, the first since April, to the impact of a tightening of monetary policy in China and slower consumption in the United States.
Japanese exports declined on a volume basis in both June and July. China and the United States are Japan's two largest trading partners.
Digital consumer goods such as DVD players and flat-panel TVs fared well, but digital cameras and personal computers fared poorly, the official said. Shipments of electronic devices to China and the United States also were slightly weak.
The government stuck to its view that employment conditions are improving, despite the latest figures showing the jobless rate worsened to 4.9 per cent in July from 4.6 per cent the previous month.
But it said attention should be paid to the effects of crude oil prices on domestic and overseas economies as well as the development of the global economy.
Japan's economy grew a real, price-adjusted 1.7 per cent on an annualised basis in the April-June quarter, below economists' expectations. But the figure is expected to be raised in a revision on Friday, boosted by capital spending.
