Japan GDP: rebound hopes rise as number revised up

STORY: Capital spending by businesses might have helped Japan’s economy to turn the corner.

Revised figures out Monday showed first-quarter GDP falling 1.8% at an annual rate.

That was better than economist forecasts, and an improvement on the 2% drop initially estimated.

Some analysts say it adds to signs that Japan’s economy has at least bottomed out.

The numbers will also be closely watched at the country’s central bank.

Analysts are keeping an eye on the Bank of Japan for clues to when it will raise rates again.

Governor Kazuo Ueda finally did a hike in March for the first time since 2007.

Now more robust data might nudge him towards another move, though policymakers have said they want to wait for signs that wages are seeing sustained increases.

Private consumption - which makes up about half of Japan’s economy - shrank 0.7% in the first quarter, unchanged from earlier estimates.

Export demand also remained weak.