The second quarterly contraction of Japan's gross domestic product in a row should not prompt the Abe administration to prepare yet another stimulus package but instead to reassess whether its trademark policies are really working to prop up the economy.

The annualized 0.8 percent fall in the July-September GDP in real terms from the prior quarter, on the heels of the 0.7 percent decline in the April-June period, marked the second time the economy has shrunk for two consecutive quarters since Prime Minister Shinzo Abe returned to power in late 2012. But in a sense the latest recession may be more disappointing. While the previous one spanning the period of April to September 2014 was triggered by the first hike in the consumption tax in 17 years, the back-to-back GDP fall over the same period this year appears to highlight the underlying weakness of consumer spending and capital investment — which together account for more than 70 percent of GDP — raising doubts about the core scenario of "Abenomics."

Personal consumption picked up 0.5 percent, but that wasn't strong enough to offset the 0.6 percent fall in the April-June period, while capital investment by businesses declined 1.3 percent for the second quarterly fall. Increases in wages and summer bonuses appear not to have been robust enough to dispel consumer concern about the rising prices of daily necessities. Despite the surge in major companies' earnings to record levels — aided by the yen's fall against the dollar — businesses appear hesitant to boost their investments in view of the slowing growth of emerging economies — in particular China — and uncertainties over domestic demand in light of the nation's declining population.