Japan's third quarter recession deeper than estimated

Japan's economy shrank more than initially estimated in the third quarter of 2014, according to revised gross domestic product (GDP) figures.

The economy contracted by 1.9% in annual terms from July to September, well above a preliminary reading of 1.6%.

It also shrank 0.5% on a quarterly basis, compared with an initial estimate of 0.4%, data showed.

A big fall in business spending plunged the economy into a deeper recession.

The revised figures, which come just days before Japan's national elections, showed that

Japan downgraded by Moody's amid rising fears over debt

Moody's has cut Japan's credit rating by one notch over rising doubts about its ability to reduce debt levels.

The decision by the ratings agency sent the yen to a seven-year low against the US dollar.

The downgrade comes less than a two weeks before a snap general election called by prime minister Shinzo Abe.

His economic stimulus policies and a decision to delay a second sales tax rise will be among the key campaign issues.

Tom Byrne, regional credit officer of Moody's, said the downgrade was closely linked to Mr Abe's decision to delay a sales tax rise due to

Japan's economy shrinks more than initial estimates

Japan's economy contracted by 7.1% in the three months to June, more than initial estimates, and revised from 6.8% reported in August.

Most forecasts were for the economy to shrink by about 7%.

The contraction during the second quarter has been widely attributed to a hike in the nation's sales tax, which rose from 5% to 8% in April.

The official gross domestic product (GDP) figure of 7.1% is an annualised number.

In quarterly terms, Japan's economy, which is the world's third-largest, shrank by 1.8% in the three months to June compared to the quarter ending in March when it grew by 1.5%.

 'Cautious decision'

Private consumption makes up some

Japan's economy signals stagnation and weakness

Japan's economy has shown signs of stagnation and some weakness as households spent less and factory output stayed flat in July.

Official data released on Friday also showed consumer inflation stayed unmoved at 3.3% from the month before.

Japan raised its sales tax from 5% to 8% in April so analysts said "real" inflation for July was actually 1.3%.

Japan's economy, which is the world's third-largest, suffered from deflation for almost two decades.

The central bank's current target for the inflation rate is 2%.

Sales tax

Since coming to power in 2012, Japan's Prime Minister Shinzo Abe has seen his various reforms aimed at reviving the economy provide some relief to the country's deflation concerns.

Mr Abe's reforms, dubbed 'Abenomics', have been aimed at boosting inflation, among other targets, in the hope that consumers would spend instead of save.

An employee of Toyota Motor's subsidiary Toyota Motor Kyushu at the Kanda Plant in