Japan’s Economy Contracts Further

Japan’s hobbled economy sank deeper into recession, shrinking 1.2% during the three months ending in December, the third consecutive quarter of contraction, the government said.

Last quarter, which ended in September, Japan slid into its third recession in a decade--sinking 0.5% or an annual rate of 2.1%. Recession is generally defined as two consecutive quarters of contraction.

The contraction for the latest quarter translates to an annual 4.5% contraction. It also marks the first time the Japanese economy has contracted for three consecutive quarters since 1993.

A 12% drop in private sector investment dragged down overall growth. The plunge in investment outweighed a 1.9% increase in consumer spending and a 2% rise in household consumption.