Japan’s economy rebounded at a slower pace than expected in the three months through December, in a sign of ongoing weakness that will concern the central bank’s new governor amid intense speculation over possible changes in monetary policy after a decade of massive stimulus.
Gross domestic product expanded at an annualized pace of 0.6% in the fourth quarter, turning positive after a revised 1% contraction over the summer, the Cabinet Office reported on Tuesday. The figure came up short of analysts’ estimates of 2% growth.
While consumption recovered, helped by domestic travel spending, businesses cut back on their outlays more than forecast and inventories dragged heavily on the economy.