Japan downgrades fourth-quarter GDP as companies scale back spending

Topics Japan | Yoshihide Suga

By Daniel Leussink and Kaori Kaneko TOKYO (Reuters) - Japan's economy expanded at a slower-than-initially-reported pace in October-December, with firms tightening spending on plant and equipment and sharply cutting inventories as the coronavirus pandemic hit demand.

The slower growth was mainly due to a sharper contraction in private inventories and capital expenditure expanding less than previously thought in the fourth quarter, even as exports remained solid. Separate data showed household spending was hit by a bigger annual.....

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