Japan's economy expanded at a slower pace in the second quarter than initially reported, as growth in business investment proved less robust than first thought.

Gross domestic product grew at an annualized pace of 1.3% in the three months through June from the previous quarter, revised Cabinet Office data showed Monday, with strong consumer spending the main driver of the expansion. That compared with a preliminary reading of 1.8%. The revised figure matched analysts' median estimate.

Economists had expected overall growth to be smaller than first estimated after finance ministry figures released last week showed manufacturers cutting back on business investment as escalating trade tensions darken the global outlook. That contrasts with the stance of more domestic-oriented non-manufacturers, which are continuing to ramp up capital spending as they automate processes to cope with a labor shortage.

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