Japan Lowered Economic Assessment on Consumers Spendings and Service Sector Outlook

Japan has lowered its overall assessment of the economy for the first time in five months as the countrywide restrictions are reenforced to counter the spread of omicron.

The government downgraded its view on consumer spending and housing construction but raised its outlook on business investment. This suggests the economy would be in better shape in the long term.

Japan now maintains quasi-emergency curbs in Tokyo and other areas which has hit service sector hard with short business hours for restaurants and bars.

The restrictions have led to the economy to slip back into contraction in the current quarter after recovering in the final three months of last year.