By Kantaro Komiya

TOKYO, Reuters – Japan has lowered its export outlook in October’s economic report. This was due to Asia-bound shipments for cars and electronics peaking amid China’s slowdown and supply chain problems.

The government’s overall economic assessment was maintained, with signs of recovery in both private and public consumption. A COVID-19 emergency status was lifted due to sharp falls in national infection rates.

The government stated that “The economy continues picking up, but the pace is slowing,” in Friday’s monthly report. This was after Prime Minister Fumio Kishhida approved it.

The outlook report highlighted more risks related to supply chain issues than to COVID-19’s spread at home or overseas. It warned that it was important to pay “close attention” to both.

The government had previously downgraded production when the rapid rise in coronavirus infections disrupted Southeast Asian auto plant operations.

Before the cabinet approved this report, a government official stated that “the effect of supply chains (issues is) now observable exports. That’s why it was downgraded this month.”

According to the official, tepid car shipments, electronics and other IT-related items were cited as well as concerns over a slowdown of China’s economic recovery.

The authorities maintained their assessments of key economic factors, including corporate profits, business spending and employment. Falling construction orders led to a decrease in public investment.

This report was issued just days after Japan’s leader Kishida dismantled the lower house parliament in preparation for the Oct. 31 general election.

The ruling party of Kishida, expected to retain majority seats, will most likely prepare a massive stimulus package in excess of tens trillions yen for the country’s recovery from the pandemic.