The economy contracted in the October-December quarter, according to revised government data that underscores growing concern that Prime Minister Shinzo Abe's reflation program is falling short of expectations.

The gross domestic product shrank an annualized 1.1 percent in the three months ended Dec. 31, according to revised data from the Cabinet Office released Tuesday. The figure was better than the preliminary 1.4 percent contraction reported last month.

The slightly less shallow contraction was affected by a modest upward revision in business spending and inventories, and came before turmoil erupted in global markets this year. That has pushed the yen 6 percent higher in 2016, threatening to hurt exporters' profits and dimming the outlook for corporate spending.