Japan's economy expanded in the October-December quarter at a slower pace than initially reported, weighed by weaker consumption but still likely supporting the case for further interest rate hikes. At the same time,

GDP growth was revised lower to 0.6% q/q below the flash estimate of 0.7% but higher than an upwardly revised 0.4% expansion in Q3, marking the third consecutive quarter of growth. Private consumption saw a slight downward revision,

The softer GDP print was driven chiefly by Q4 private consumption being revised down to flat from an initial reading showing 0.1% q-o-q growth. The print also slowed sharply from the prior quarter’s growth of 0.7%. But growth in capital expenditures was revised up slightly to 0.6% q-o-q from 0.5% q-o-q. Export growth remained steady at 0.7% q-o-q.