Japanese Economic Struggles Continue

In a significant shift, the government admitted Monday that Japan’s economic hangover from the 1980s was not going to get better soon, and may even get worse.

The government’s main economic forecaster, the Economic Planning Agency, acknowledged that business conditions are worsening.

It was forced to change its evaluation after industrial output and shipments fell steeply in July from June, while inventories rose to the highest level since the last quarter of 1993. Output is expected to fall 4.3 percent this month compared with a year ago.

Unemployment remains at a record high of 3.2 percent.