The economy contracted more than the government initially estimated in the calendar fourth quarter because of a downward revision to capital investment and consumer spending.
Gross domestic product shrank an annualized 1.3 percent in the three months that ended Dec. 31, more than the 1.1 percent contraction reported last month, the Cabinet Office said Thursday. The median forecast of 26 economists surveyed by Bloomberg News was for a 1.2 percent contraction.
Recent reports show the world's third-largest economy may have already put the worst behind it with machinery orders, an indicator of future capital spending, and industrial production both rising in January. Companies including Sony Corp. and Nissan Motor Co. are forecasting an increase in sales as demand in Asia grows.