Japan downgrades economy for second month as output sags

The Bank of Japan is preparing to roughly halve its 1% economic growth forecast for this fiscal year at a meeting on Oct 31 but is sticking to its prediction that inflation will hit its 2% target - AFP Photo.

TOKYO: Japan's government cut its overall economic assessment for the second straight month as weak consumption after a sales tax hike in April is causing companies to reduce production.

The government on Tuesday also cut its view on industrial output for the first time in five months as companies produced fewer goods and as inventories piled up due to weak demand.