Japan's gross domestic product, or the total value of the nation's goods and services, dropped at an annual pace of 0.4% in the July-Septebmer period as companies sharply curtailed spending, the government said Monday.
The worse-than-expected result indicates that Japan is now technically in a recession, defined as two straight quarters of negative growth. GDP in the April-June period fell a revised 3.7% and rose 4.0 in the first quarter.
Economists surveyed by Kyodo news agency had predicted an annualized 0.1% rise in the third quarter.
On a quarterly basis, GDP contracted 0.1%, the government said. Business investment - a main driver of Japan's six-year economic recovery since 2002 - slid 1.7% from the previous quarter.
In trading Monday, the benchmark Nikkei 225 stock index was down 2.7%.
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Manufacturing (ISM)
