| NEWS ARCHIVES |
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| Japan's Q4 GDP expands by less than forecast rate of 3.8%, down from 4.6% |
| 11 Mar 2010 |
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Japan’s economy expanded by less than initially estimated in the fourth quarter last year.
Data out today shows gross domestic product (GDP) rose at an annual 3.8 percent pace.
That’s slower than the 4.6 percent reported in last month’s preliminary figures.
Most economists had expected a 4 percent GDP growth.
Compared to the previous 3 months, Japan’s GDP expanded 0.9 percent in the fourth quarter, slower than the 1.1 percent growth first reported.
The drop came as companies slashed spending on plant and equipment.
The report suggests business spending remains the weak link of an economic recovery that has begun to spread from exporters to households.
About a third of factory capacity is sitting idle and falling prices are squeezing profit margins.
Separately, Japan’s GDP deflator, the broadest measure of prices in the economy, fell 2.8 percent, compared with the record 3 percent initially reported. |