TOKYO (dpa-AFX) - Japan's gross domestic product contracted a downwardly revised 7.1 percent on year in the second quarter of 2014, the Cabinet Office said in Monday's final reading.
The reading marked the country's worst decline since the earthquake and tsunami in 2011, due in large part to a sharp decline in consumer spending following the implementation of a consumption tax hike in April.
The headline figure missed forecasts for a downward revision to -7.0 percent after the August 13 preliminary estimate suggested a contraction of 6.8 percent.
GDP had climbed 6.1 percent on year in the first quarter.
On an annualized quarterly basis, GDP dipped a downwardly revised 1.8 percent - matching expectations last month's reading of -1.7 percent.
GDP had risen 1.5 percent on quarter in the previous three months.
Nominal GDP eased a revised 0.2 percent on quarter, missing estimates for -0.1 percent, which would have been unchanged from the estimate. Nominal GDP jumped 1.6 percent on quarter in Q1.
On a yearly basis, nominal GDP was revised down from -0.4 percent to -0.7 percent.
The GDP deflator was up 2.0 percent on year, unrevised and as expected, following the 0.1 percent decline in the first quarter.
Business spending was revised all the way down to -5.1 percent on quarter, missing expectations for a decline of 3.4 percent following the 2.5 percent drop in the preliminary reading.
Business spending surged 7.7 percent in the first quarter.
Consumer spending contracted a revised 5.3 percent on quarter versus forecasts for -5.0 percent after coming in at -5.2 percent in the estimate.
Consumer spending added 2.1 percent in the previous three months.
On a quarterly basis, domestic demand was bumped down to -2.9 percent from -2.8 percent, while private demand was unrevised at -2.9 percent.
On a yearly basis, domestic demand was revised down to -10.7 percent from -10.5 percent, while private demand was unchanged at -13.9 percent.
Copyright RTT News/dpa-AFX