TOKYO--Japan's economy grew at a slower pace than initially estimated in the April-to-June quarter as companies became more cautious about making fixed investments amid global trade uncertainty, government data showed Monday.

The economy expanded an annualized 1.3% in the second quarter, following 2.2% growth in the previous three months, revised gross domestic product figures showed. That was lower than the annualized 1.8% growth in a preliminary estimate from the Cabinet Office last month.

Monday's data showed capital spending rose 0.2% from the previous quarter, sharply lower than the initial estimate of a 1.5% increase.

Economists say the outlook is getting more cloudy as there is no sign of the trade dispute between Japan's two biggest trading partners--the U.S. and China--ending anytime soon.

SMBC Nikko Securities economist Yoshimasa Maruyama expects the Japanese economy to fall into a mild recession in the October-to-December period. In October, the Japanese economy is facing another big event--an increase in its consumption tax to 10% from the current 8%.

Mr. Maruyama said the Japanese government is expected to roll out fiscal stimulus to prevent any serious downturn.

Private consumption, which accounts for more than half of GDP, rose 0.6%, unchanged from the initial estimate.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

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