TOKYO (AP) – Japan’s economy contracted 1.9 percent in annual terms in the July-September period, according to revised data released Monday that confirmed a recession in the world’s third-largest economy ahead of an election on Sunday.
Data for both business and public spending were worse than anticipated. Most economists had forecast an upward revision of earlier figures showing a 1.6 percent contraction.
On a quarterly basis, the economy shrank 0.5 percent. The earlier estimate was that it had fallen 0.4 percent. In the April-June quarter, the economy contracted 7.3 percent.
Economists say adjustments in inventories are overstating the weakness of the economy somewhat, and that monthly data are more upbeat.
“The upshot is that the economy likely returned to growth this quarter,” Marcel Thieliant, of Capital Economics, said in a commentary Monday.