Japan’s emergence from recession was weaker than first estimated as companies unexpectedly cut investment and drew down their inventories, offsetting a pickup in consumer spending, Bloomberg said. Gross domestic product expanded an annualized 1.5% in the three months through December from the previous quarter, less than a preliminary 2.2%, revised government data show. The rebound followed a contraction caused by an increase in the sales tax last April. The third straight quarter of falling investment indicates companies remain reluctant to plow their record cash holdings into the economy as they work off inventories that swelled after the tax hike. A sustained recovery in consumer spending hinges on employers boosting pay faster than rising living costs.
