Japan cut its growth forecast for this year on Friday as consumption took a hit from rising import costs due to a weak yen, highlighting the fragile nature of the economic recovery.
But it projected growth to accelerate next year on robust capital expenditure and consumption, retaining its view the economy will sustain a domestic demand-led recovery.
Some members of the government's top economic council, however, voiced concern over recent weakness in consumption and the pain the yen's fall was inflicting on households.