The economy shrank much faster in the third quarter than the government initially estimated, after businesses cut spending and slashed inventories in anticipation of a prolonged recession, Cabinet Office data showed Tuesday.
Gross domestic product contracted at an annual 1.8 percent pace in the three months ended Sept. 30, the Cabinet Office said, more than the 0.4 percent reported last month. Economists surveyed by Bloomberg had predicted a 0.9 percent decline.
Japan's first recession since 2001 is deepening as companies including Canon Inc. and Toyota Motor Corp. cut production, jobs and spending. The Bank of Japan's "tankan" survey next week will probably show sentiment among the largest manufacturers falling the most in 34 years, economists predict.
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