The government on Thursday downgraded its assessment of exports for the first time in six months to “almost flat” in July, a worrying sign for the Japanese economy, despite a moderate recovery remaining on track. In its monthly report, the Cabinet Office retained its overall economic assessment for the sixth straight month. The “lingering stagnation” in China’s real estate market was added to a list of downside risks to Japan. Japan suffered a sharper-than-initially reported contraction in the January-March period, with private consumption hurt by rising prices. Exports were a bright spot, aid…