Japan Q4 GDP unexpectedly contracts due to weak domestic demand

Japan's economy unexpectedly contracted 0.4% on an annualised basis in October-December following the previous quarter's contraction, as consumption of clothing and eating out caused a decline in private consumption, Cabinet Office said on Thursday.

The annualised GDP figure translated into a quarterly decrease of 0.1%, confounding the median economist forecast of a rise of 0.3%.

Private consumption, which makes up more than half the economy, declined 0.2%, the Cabinet Office said, versus a 0.1% gain seen by economists.