TOKYO—Japan’s economy shrank slightly less than initially reported in the first quarter, as private consumption remained resilient in the face of resurgent COVID-19 infections and companies rebuilt their stock, offsetting a drop in business spending.
While the slower contraction is welcome news for policymakers hoping the economy will return to growth this quarter, persistent supply chain disruptions remain a risk to economic momentum in April-June.
Revised gross domestic product (GDP) data released by the Cabinet Office on Wednesday showed Japan’s economy shrank an annualized 0.5 percent in January-March. That was a smaller drop than the preliminary reading of a 1.0 percent fall released last month….