Japan's economy rebounded at a weaker pace than first thought in the second quarter as companies cut investment and stockpiles amid a slow recovery from the worst recession in decades, the government said today.
The world's second-largest economy grew 0.6% in the months from April to June from the previous quarter, worse than an initial estimate of 0.9%, data showed.
Annualised growth was revised down to 2.3% from 3.7%. But it was still the first expansion in five quarters - ending a year-long recession - and analysts said the downgrade was largely due to cuts by companies to their stockpiles of unsold goods, which bode well for the future.
Japan's heavy dependence on foreign demand to drive its economy left it highly vulnerable to the global economic slowdown, which crushed demand for its key exports such as cars, high-tech goods and machinery.
Its economy started shrinking in the second quarter of 2008 and suffered annualised contractions of more than 12% for two consecutive quarters up to March.
