A top official at the Cabinet Office indicated Wednesday that economic data due out Friday may show the economy contracted for a third consecutive quarter in the October-December period.
"The odds are that the figure may turn out to be lower than expected" as most private economists estimate October-December gross domestic product growth of zero, the official told reporters.
Japan's GDP -- the broadest measure of the economy's health -- fell 0.5 percent in real terms in July-September from the previous quarter for an annualized contraction of 2.1 percent.
The official said he is bearish on the upcoming GDP data because the Cabinet Office's estimates, based on figures released Wednesday by the Finance Ministry, show private-sector capital investment contracted 6.3 percent in October-December from the previous quarter.
The Finance Ministry said capital spending by companies fell 14.5 percent in the October-December quarter from a year earlier on an all-industry basis. It was the first time in eight quarters that capital investment fell from the previous year's level.
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