Japan’s Economy Shrinks Less Than Expected on Quake Rebuilding

Japan’s economy contracted less than economists estimated in the second quarter as reconstruction work counters the effects of the record March 11 earthquake and a strengthening yen.

Gross domestic product shrank at an annualized 1.3 percent rate in the three months ended June 30, marking three consecutive quarters of declines, the Cabinet office said today in Tokyo. The median forecast of 25 economists surveyed by Bloomberg News was for a 2.5 percent drop.