The economy shrank more than initially estimated in the second quarter as capital expenditure took a hit from the coronavirus crisis, highlighting the challenge policymakers face in averting a deeper recession.

Other data put that challenge in perspective, with household spending and wages falling in July as the broadening impact of the COVID-19 pandemic kept consumption frail even after lockdown measures were lifted in May.

The world's third-largest economy shrank an annualized 28.1 percent in April-June, more than a preliminary reading of a 27.8 percent contraction, revised gross domestic product data showed Tuesday, suffering its worst postwar contraction.