TOKYO, Oct 9 (Reuters) - Japan's factory output is expectedto remain weak in the October-December quarter due to a delay ina pickup in overseas growth, the Bank of Japan said on Tuesday,suggesting it remains mindful of the risk of a further slowdownin the export-reliant economy.
Private consumption is also expected to suffer a downturnwith an end to government subsidies for low-emission cars thathad supported domestic demand, the central bank said in itsmonthly economic report.
"Economic activity is flattening out," the BOJ said.
The bleak assessment underscores the dominant market viewthat the central bank may expand monetary stimulus later thismonth to keep the economy on a recovery track.
At its policy-setting meeting last week, the BOJ keptmonetary policy on hold but left the door open for furtherstimulus by warning of risks to the outlook.
The BOJ releases its assessment of the overall economy onthe day of its policy-setting meeting. It issues a more thoroughassessment of each component of the economy in the monthlyreport, usually released the following market day.
(Reporting by Leika Kihara; Editing by Michael Watson)
Keywords: JAPAN ECONOMY/BOJ REPORT