Japan's economy shrank an annualised 1.3 per cent in the April-June quarter following the March 11 quake and tsunami disaster, data showed on Monday, beating market expectations of a 2.7-per cent contraction.
Post-disaster falls in consumer spending and in April exports were the main causes of the third straight quarterlycontraction, analysts said.
But other recent data have started to show signs of recovery in the world's third biggest economy, as industrial supply chains have been restored and post-quake reconstruction has picked up along the tsunami-hit coast.
"I think we will see clear signs of recovery in the July-September quarter," said Taro Saito, a senior economist at NLI Research Institute.
Japan's triple calamity five months ago killed more than 20,000 people, devastated large areas of the northeast and sparked a nuclear crisis at the Fukushima plant, which continues to leak radiation into the environment.
The disaster also caused power shortfalls that have forced a summer-time electricity saving campaign. Only 15 of Japan's 54 nuclear reactors are now operating, with more due to cease operations soon for regular checks.
Japan's Cabinet Office last Friday cut its economic growth forecast for this fiscal year to 0.5 per cent, from 1.5 per cent, but said it expects growth to recover to between 2.7 and 2.9 per cent in fiscal year 2012.
