Virus impact on Japan’s business spending sharper than previously thought

Japan’s first-quarter business spending came smaller than what was initially estimated, revised data showed on Monday. This underscored a sharper damage that the novel coronavirus pandemic had inflicted on the world’s third-biggest economy.

Government data showed that the country’s capital expenditure only advanced 0.1% in the first quarter from a year ago. The figure came lower than the initial estimate of a 4.3% growth reported in June. More so, it indicated that the economy declined faster than what was initially recorded in the first quarter.

On a seasonally adjusted basis, capital expenditure increased 3.6% quarter-on-quarter, placing lower than the initial reading of a 6.7% jump. Japan’s economy recorded a 2.2% contraction in the first quarter and still on course for a much sharper economic downturn in the second quarter.