Japan's economy grew by much less than previously thought in the third quarter of 2007 due to a housing slump and slower investment by firms in new factories and equipment.
The downward revision reinforced market expectations that another rise in Japan's super-low interest rates is unlikely any time soon.
Japan's gross domestic product (GDP) grew at an annualised rate of 1.5% in the three months to September, down from an initial estimate of 2.6%, the Cabinet Office said.
Compared with the previous quarter, GDP grew by 0.4%, against a previous estimate of 0.6%.
The world's second-largest economy has seen a rebound after shrinking by a revised 0.5% in the second quarter, with brisk exports to the rest of Asia helping to return growth to positive territory.
Growth in companies' capital investment in new plants and machinery was revised down to 1.1% quarter-on-quarter for the three months to September from 1.7%.
Another particular area of concern is the housing sector, where activity has slumped since the introduction of stricter earthquake resistance standards. Residential investment plunged 7.9% in the third quarter.
