Japanese recession worse than thought

Japan’s economy contracted 1.9% in annual terms in the July-September period, according to revised data released on Monday that confirmed a recession in the world’s third-largest economy ahead of an election on Sunday.

Data for both business and public spending were worse than anticipated. Most economists had forecast an upward revision of earlier figures showing a 1.6% contraction.

On a quarterly basis, the economy shrank 0.5%. The earlier estimate was that it had fallen 0.4%. In the April-June quarter, the economy contracted 7.3%.

Economists say adjustments in inventories are overstating the weakness of the economy somewhat, and that monthly data are more upbeat.

“The upshot is that the economy likely returned to growth this quarter,” Marcel Thieliant, of Capital Economics, said in a commentary on Monday.   Associated Press