Dec 7, 2014 7:22 PM
Japan new data show GDP fell 1.9 pct in July-Sept
The Associated Press
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 that the world's third-largest economy is in recession.
The data were worse than anticipated, since most economists had forecast an upward revision of earlier figures showing a 1.6 percent contraction.
Weaker business spending was one factor behind the slowdown. Public spending also was lower than originally thought.
A sales tax hike to 8 percent from 5 percent is seen as the main reason why the economy has faltered after recovering from the last recession in late 2012. Late last month, Prime Minister Shinzo Abe postponed a planned increase in the tax to 10 percent that was due to take place in 2015. It was put off until April 2017.