Japan revises down July-September GDP

[December 09, 2011]  TOKYO (AP) -- Japan's government says the economy grew slightly less than its initial estimate in the July-September period as business investment wilted in the face of growing global challenges.

The Cabinet Office announced Friday that the world's third-largest economy grew at an annualized rate of 5.6 percent during the three-month period. It had estimated gross domestic product growth of 6 percent in a preliminary report last month.

The figure still represents the first growth in four quarters and a robust rebound from the March earthquake and tsunami disaster.

The GDP figure translates to a 1.5 percent rise from the previous quarter, according to the Cabinet Office.

But capital investment declined 0.4 percent, compared to an estimated 1.1 percent rise in the preliminary report. Japanese companies have been grappling with a strong yen and a faltering global economy, which could undermine vital exports.

Private consumption, which makes up more than half of GDP, was lowered to 0.7 percent on-quarter growth from 1 percent in the government's first report.

Economists predict GDP -- a measure of the value of all goods and services produced domestically -- to contract slightly in the last three months of the year before turning moderately positive again next year. New government spending on disaster reconstruction is expected to help offset weaker overseas demand.

[Associated Press]

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