Japan's economy shrank by more than previously thought in the April-June quarter, with companies cutting back more severely on capital spending after the March earthquake and tsunami than first expected.
Japan's revised gross domestic product shrank at an annual pace of 2.1% in the quarter, the Cabinet Office said, revising August's 1.3% estimate as firms deferred spending plans after the disasters.
Recent data have underlined worries about Japan's recovery, as a slowing global economy and the impact of a strong yen on the profitability of exporters cloud hopes for a second-half rebound.
Figures yesterday showed that July machinery orders, a key indicator of corporate capital spending, plunged 8.2% after rising the previous month, as firms scaled back.
Today's figures showed that the overall economy shrank for the third quarter in a row, falling by a revised 0.5% from the previous quarter. The initial estimate had been for a 0.3% dip.
The March 11 quake-tsunami left 20,000 people dead or missing, devastated swathes of the north-east coast and sparked a crisis at the Fukushima nuclear plant, which continues to leak radiation into the environment.
The weeks and months that followed in April-June saw a tumble in exports as component supply chains were shattered, forcing companies to shut plants.
Private consumption, which accounts for two-thirds of Japan's GDP, also slid as consumers restrained their spending after the disaster, with declines in sales of items such as vehicles.
Japanese companies have raced to restore output more quickly than expected, but with most of Japan's nuclear reactors offline for safety checks, enforced peak-power usage limits have complicated production schedules.
