Japan’s economy sinks into contraction as spending, investment decline

By YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — Japan’s economy slipped into a contraction in the third quarter, decreasing at an annual pace of 2.1% as consumption and investments shrank. The Cabinet Office said Wednesday that real gross domestic product, which measures the sum value of a nation’s products and services, fell 0.5% in the third quarter for the world’s third largest economy. That would result in a 2.1% drop if continued for a full 12 months. The numbers were far worse than what had been expected, according to ING, which had forecast an annual contraction rate of 0.5%. Private consumption shrank an annualized 0.2%. Corporate investment decreased 2.5%.