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Japan signals caution on economy over China uncertainty

Tokyo says recovery continues while flagging exports as a concern

The government maintained its assessment of a moderate economic recovery but warned that the struggling Chinese economy could be felt at home.   © Reuters

TOKYO -- Japan maintained its official view that its economy is in recovery on Wednesday but tweaked the language of its assessment for the first time in three years on worries that slowing economies overseas, especially in China, will eventually be felt at home.

Citing stable capital spending and consumption, the Cabinet Office diagnosed the economy as "recovering at a moderate pace" in the March edition of its monthly economic report but warned that "weakness is seen recently in exports and industrial production in some sectors."

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