The government will probably downgrade the economy in its December report, making it clear things are slowing down, sources at the Cabinet Office said Thursday.
The office's economic analysts consider the downgrade, which would be the second in as many months, necessary if the recent slowdowns in information technology products, including semiconductors and liquid crystal display panels, are taken into account, they said.
It will be the first time the government has cut its economic assessment for two months in a row since the three consecutive downgrades from November 2002 to January 2003.
The office will release the monthly economic report Monday, after Heizo Takenaka, state minister in charge of economic and fiscal policy, presents it at an economic ministers' meeting the same day.
In its November report, the office said, "The economy continues to recover, while some weak movements have been seen recently."
In the upcoming report, it is expected to maintain its view that the recovery is continuing as a whole, but will mention several economic indicators that have gotten weaker lately, the sources said.