The Japanese economy showed little sign of a clear recovery, with the contraction being smaller than initially estimated, providing ample reason for continued caution among policymakers as the Bank of Japan monitors the timing of its next rate hike.
Gross domestic product (GDP) shrank 1.8% year-on-year in the three months to March, the government said on Monday, compared with a 2% decline reported in provisional data. Economists had predicted the updated figures would remain unchanged.
The data showed that both consumers and businesses cut back on spending and unsold inventories piled up on warehouse shelves, while the strongest inflation trend in decades continues to shrink spending in real terms.
