The economy grew by a real 1.3 percent from October to December 2005 from the previous quarter, revised downward from the 1.4 percent rise reported initially, as capital spending declined, particularly among businesses, the government said Monday.
The revised figures translate to an annual GDP growth rate of 5.4 percent, compared with the earlier reported 5.5 percent increase, the Cabinet Office said.
This was still higher than the average 5.0 growth forecast by private-sector economists. The economy has now seen economic growth for four quarters in a row, with GDP rising by 2.7 percent in calendar 2005. The government initially reported real growth of 2.8 percent.
The economy has now expanded for six straight years, with last year's growth the highest since 2000, when the GDP rose by 2.9 percent.
With the latest data, it seems certain the economy will easily meet the government's target of 2.7 percent real growth for fiscal 2005 through March 31.
The target will be attained even if the economy shrinks by 2.3 percent from January to March compared with the previous quarter. If the economy stays flat, full-year growth would come to 3.2 percent.
A Cabinet Office official said the basic conclusion that the economy is recovering is unchanged, helped by solid private demand.
"Although public investment fell and capital spending declined among small businesses, private consumption increased," the official said.