Nov 15, 8:02 PM EST

Japan slips into technical recession with third-quarter contraction on falling domestic demand

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TOKYO (AP) -- Japan's economy shrank in the July-September quarter as domestic demand declined, sending the nation into a technical recession.

The numbers from the Cabinet Office Monday showed that gross domestic product, the value of a nation's goods and services, declined at an annualized pace of 0.8 percent in the third quarter, and contracted a seasonally adjusted 0.2 percent from the previous quarter.

That meant the world's third-biggest economy slipped into a technical recession because it had contracted in the second quarter as well.

The government showed in its preliminary GDP estimates that domestic demand fell 1.2 percent at an annual rate.

Japan has been slipping in and out of such periods of contractions, while eking out growth in between. Weak GDP numbers could prompt fresh government stimulus measures.

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