Japan's recession deepens

Japan's recession was deeper than initially estimated as company investment unexpectedly shrank, a blow to Prime Minister Shinzo Abe as he campaigns for re-election on his economic credentials.

The economy contracted an annualised 1.9 per cent in the July to September period from the previous quarter, weaker than the 1.6 per cent drop reported in preliminary data. The result was also below every forecast in a Bloomberg News survey that showed a median 0.5 per cent decrease.