Japan Out of Recession But Growth Lower Than Thought

Japan's economy grew less than initially thought in the final quarter of 2014, revised government data showed on Monday, showing the world's third largest economy limping out of recession.

The Japanese economy expanded 0.4 per cent in the October-December period from the previous quarter, down from an initial estimate of 0.6 per cent growth, the Cabinet Office said.

Private-sector capital investment was also revised down to a 0.1 per cent drop on the previous quarter, compared with an earlier announced rise of 0.1 per cent.

The data confirmed, however, that the Japanese economy exited recession in the final quarter of 2014 as the gross domestic product (GDP) expansion followed two consecutive quarters of contraction.

Japan's economy slammed on the brakes last year after an April sales tax rise hammered consumer spending.

On an annualised basis, Japan's GDP growth was revised down to 1.5 per cent from the previous figure of 2.2 per cent.

It trails the reading for the United States, where revised data showed the economy growing an annualised 2.2 per cent in the fourth quarter.

The US Labor Department said on Friday the economy pumped out 295,000 new jobs in February, raising expectations the Federal Reserve will raise interest rates as early as June.