Japan’s government maintained its assessment of the economy after cutting it in the previous month as more signs emerged that a global slowdown is damping the country’s recovery. The rebound is “pausing” and will remain weak “for a while,” the Cabinet Office said in a monthly report in Tokyo today. It downgraded its evaluation of consumer spending, imports and industrial production. Japan’s lower house this week passed legislation to fund Prime Minister Naoto Kan’s 5.1 trillion yen ($61 billion) stimulus to protect companies from the strong yen. Even as the economy’s expansion accelerated in the third quarter, the government said deflation, stock and currency swings and more moderate growth overseas remain risks to the outlook. Gross domestic product climbed an annualized 3.9 percent in the three months ended Sept. 30, faster than the 1.8 percent expansion in the previous quarter, boosted by last-minute purchases of cars before a stimulus program expired. In a sign of moderating exports, overseas demand didn’t contribute to growth for the first time in six quarters. The one encouraging sign for the government came from the job market. The Cabinet Office raised its assessment of employment after the jobless rate unexpectedly declined to 5 percent in September. To contact the reporter on this story: Aki Ito in Tokyo at aito16@bloomberg.net To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net

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