© Reuters. A man walks past a sign of Bank of Japan outside its headquarters in Tokyo, Japan, October 31, 2023. REUTERS/Kim Kyung-Hoon/File Photo
By Satoshi Sugiyama
TOKYO (Reuters) -Japan’s economy fell faster than first estimated in the third quarter, revised data showed on Friday, as the household sector faced growing headwinds, complicating the central bank’s efforts to phase out its accommodative monetary policy.
Consumer and business spending both shrank, driving down third-quarter gross domestic product (GDP). Separate data showed real wages and household spending kept falling in October, as prolonged inflation discouraged shoppers.
“Weakness in personal consumption is likely to continue for the foreseeable future, as real disposable income is likely to extend its decline, which is seen as a factor in sluggish consumption,” said Kota Suzuki, an economist at Daiwa Securities.
The economy lost an annualised 2.9% in July-September, the revised Cabinet Office data showed, more than a previously estimated 2.1% contraction and market forecasts for a revised 2.0% decline.
Capital expenditure fell 0.4%, which compared with a preliminary 0.6% decease and a median market…
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