Japan revises economic growth in 1Q downward, as latest data show sluggish demand and rising prices

Japan has revised earlier estimates to show that its economy contracted at a 2.9% annual pace in the first quarter of the year, as meanwhile a survey by the central bank showed conditions remain sluggish. Analysts had expected the downward revision in the GDP data for January-March and said it was mainly based on a change in data on construction activity. The earlier estimate was of a 1.8% contraction in annual terms. The quarterly survey by the Bank of Japan showed a modest improvement in business sentiment among large and medium manufacturers. But details of the survey showed weakness both in Japan and overseas.