TOKYO: Japan's economy contracted less than initially reported in January-March, due to upgrades in capital expenditure, government data showed on Monday.
Analysts expect the Japanese economy to have bottomed out in the first quarter, although a stubbornly weak yen and disruptions at major automaker plants continue to weigh on the outlook.
Japan's GDP shrank a revised 1.8 per cent annualised in the first quarter from the previous three months, Cabinet Office data showed on Monday, versus economists' median forecast for a 1.9 per cent contraction and a 2.0 per cent decline in the preliminary estimate.
The revised figure translates into a quarter-on-quarter contraction of 0.5 per cent in price-adjusted terms, unchanged from the initial reading issued last month.
The revised GDP data comes as investors seek clues on the timing of further rate hikes by the Bank of Japan (BOJ), which raised rates in March for the first time since 2007 in a landmark shift away from ultra-loose monetary policy.
The capital expenditure component of GDP, a barometer of private demand-led strength, fell 0.4 per cent in the first quarter, revised up from a 0.8 per cent decline in the initial estimate, making it a main factor for the overall upward GDP revision. It compared with a 0.7 per cent fall seen by economists in a Reuters poll.
Private consumption, which accounts for more than half of the Japanese economy, fell 0.7 per cent in the first quarter, compared with the preliminary estimate of a 0.7 per cent decline as rising living costs squeezed household finances.
External demand, or exports minus imports, shaved 0.4 of a percentage point off overall GDP, while domestic demand knocked off 0.1 point, the data showed.