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Economy

Japan downgrades Q3 GDP on deeper hit to consumer spending

Global chip shortage drags on corporate sentiment

Japan's economy declined an annualized 3.6% in July-September as private consumption fell. Durable goods spending posted its biggest drop since 1994 when comparable data first became available.

TOKYO (Reuters) -- Japan's economy shrank slightly faster than initially reported in the third quarter, as a sharp rise in local COVID-19 cases hit private consumption and a global chip supply shortage hurt corporate sentiment.

The deeper contraction is a setback for policymakers hoping easing supply shortages and loosened pandemic curbs would support a recovery in the world's third-largest economy this quarter.

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