Revised government data show Japan's economy shrank by more than initial estimates in the July-September quarter. Sluggish corporate capital investment was a major factor.
Figures from the Cabinet Office on Monday reveal that inflation-adjusted gross domestic product contracted 2.3 percent in annualized terms in the period. That's weaker than the preliminary reading of a 1.8 percent decline.
On a quarter-on-quarter basis, real GDP shrank a revised 0.6 percent.
Corporate capital spending slumped minus 0.2 percent from the initial prediction of a 1 percent increase.
Private residential investment plunged 8.2 percent, but it was revised up by 1.2 percentage points from the initial estimate. The slide was mainly in reaction to a rush in housing starts before April, when tougher energy-saving standards took effect.
Exports dropped 1.2 percent as US tariffs reduced shipments of automobiles and other items. The number was unchanged from the initial report.
Private consumption, which accounts for more than half of the economy, grew 0.2 percent. That was up 0.1 point from the earlier prediction. It reflects increased spending on dining-out and food delivery services.

Quiz 1:
According to the article, what was the annualized change in inflation-adjusted GDP in the July-September quarter of 2025?
A. 1.8%
B. 2.3%
C. -1.8%
D. -2.3%

Quiz 2:
What was the change in corporate capital spending compared to the initial prediction in the July-September quarter of 2025?
A. Increased by 1%
B. Decreased by 0.2%
C. No change from the initial prediction
D. Revised up by 1.2 percentage points but not compared to the initial prediction

Quiz 3:
What was the change in private residential investment on a quarter-on-quarter basis in the July-September quarter of 2025?
A. Increased by 8.2%
B. Decreased by 8.2%
C. Revised up by 1.2 percentage points but not compared to the initial estimate
D. No change from the initial report