Japan downgrades August economic assessment

TOKYO - Japanese government downgraded the assessment of the monthly economy report of August on Tuesday over the eurozone debt crisis and the weak domestic production.

It is the first time the Cabinet Office downgraded the economic assessment in 10 months.

The August edition report said Japan is on the road of recovery as the strong constriction demands in earthquake and tsunami hit area. But the further slowdown of overseas economies make exports fall sharply.

The government cut its assessment of imports, housing construction, output and consumption, but upgraded the assessment of employment conditions as a sign of improvement.