Japan's First-Quarter GDP Revised Down Amid Weak Demand and Rising Costs

The economy contracted at a 2.9% annual rate, with sluggish consumer spending and increased import costs impacting growth.

The Bank of Japan's survey showed mixed business sentiment, with manufacturing confidence up but service-sector outlook declining.
Public investment and private residential spending both saw significant downward revisions.
The weak yen has inflated export profits but increased costs for imported goods, particularly oil and gas.
Household spending fell in real terms, further dampening economic growth.
The revised GDP data complicates the Bank of Japan's decision on future interest rate hikes.