Japan growth revised down

The contribution of domestic demand was also revised down from preliminary data.

Japan8217;s economy grew less than initially estimated in the fourth quarter and a broad gauge of price trends hit a record negative reading,adding to pressure on the Bank of Japan to ease monetary policy further next week.

While solid exports to Asia will continue to support growth,the economy may slow on cuts in public works and as the impact of government subsidies on energy-efficient goods starts to wane,analysts say.

The contribution of domestic demand was also revised down from preliminary data that showed it was the biggest driver of growth. The change was partly due to a fall in inventories,which could be a positive as it could point to higher factory output in the future.

Some economists say domestic demand and overall growth would be stronger if it were not for the impact of deflation,and that bolsters calls for the central bank to do more.

8220;The revised GDP data doesn8217;t change the prospects of the economy slowing down towards the summer,chiefly because the boost from government stimulus on private consumption is likely to peter out,8221; said Seiji Shiraishi,chief economist at HSBC Securities Japan.

8220;Although the government is reportedly set to upgrade its economic assessment,the Bank of Japan is entirely focused on price moves and probably on government pressure,so it is expected to take further easing steps.8221;

The economy grew 0.9 per cent in the October-December quarter,slower than the preliminary estimate of 1.1 per cent and a median market forecast of 1.0 per cent,as capital spending rose less than initially reported and with private inventories subtracted from growth,data by the Cabinet Office showed on Thursday.

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Japan8217;s expansion in the fourth quarter was faster than the 0.1 per cent growth in the European Union but slower than a 1.4 per cent expansion in the United States in the same period.