Japan's economy expanded at a pace slower than that initially reported in the October-December period, with firms turning more cautious about spending on plant and equipment as the impact of the coronavirus pandemic weighed on the economic outlook.

The slower growth was mainly due to weaker capital expenditure and public spending, which both expanded less than previously thought in the fourth quarter, even as exports remained solid.

Separate data showed household spending was hit by a bigger annual drop in January than in the prior month, a sign the COVID-19 pandemic was keeping consumers cautious about shopping.