Japan Cuts Economic Outlook as Weak Demand Weighs on Growth
• Japan's government cut its view on the economy for the first time in 10 months due to weak demand weighing on capital spending and consumer expenditure
• The Cabinet Office assessment came after data showed the economy shrank in Q3, the first contraction in 3 quarters
• The report said business conditions and corporate earnings continue improving, but this is not translating into wages and investment
• Inflation is squeezing consumer spending on goods, although spending on services like dining out remains strong
• To soften inflation's impact, PM Kishida's government compiled a $113B package of economic measures