Japan's Economy Shrinks In July - September
Japan's economy shrank in the July-September period, according to the latest GDP figures released on Tuesday. It was the first contraction in four quarters.
The Cabinet Office says the economy contracted in the latest quarter from the previous one at an annualized rate of 1.2 percent in real terms.
Consumer spending, which accounts for more than half of Japan's GDP, grew only 0.3 percent.
Consumers held back out of renewed concerns about the coronavirus. That led to only a small uptick in demand for travel and other services. Rising energy and food prices also put a damper on sentiment.
Exports expanded 1.9 percent during the period. But soaring energy prices and the weak Japanese yen drove up the cost of imports by 5.2 percent.
However, capital spending was fairly strong, growing 1.5 percent. Investments that had been put off due to the pandemic appear to be moving forward as economic activity recovers.