TOKYO :Japan's economy contracted in the January-March quarter at a slower pace than initially estimated, government data showed on Monday, with consumption figures revised upwards even as uncertainty on U.S. tariffs clouds the outlook. Gross domestic product shrank an annualised 0.2 per cent in the three months to March, the Cabinet Office's revised data showed, slower than the 0.7 per cent contraction in the initial estimate and economists' median forecast. The revised quarter-on-quarter number translates as flat in price-adjusted terms, compared with a 0.2 per cent shrinkage issued on May 16. Monday's revised data reinforced analysts' concern that the economy was losing steam even before U.S. President Donald Trump's so-called reciprocal tariffs in April 2. Private consumption, which accounts for more than half of the Japanese economy, inched up 0.1 per cent, versus flat in the preliminary reading. The capital expenditure component of GDP, a barometer of private demand-led strength, rose 1.1 per cent in the first quarter, revised down from 1.4 per cent in the initial estimate. Economists had estimated a 1.3 per cent rise. External demand, or exports minus imports, knocked 0.8 per centage point off growth, the same as the initial reading. On the other hand, domestic demand contributed 0.8 per centage point. Japan faces a 24 per cent U.S. tariff starting in July unless it can negotiate a lower rate. It is also scrambling to find ways to persuade Washington to exempt its automakers from 25 per cent tariffs on automobiles, Japan's biggest industry. Policymakers and analysts are concerned global trade tension unleashed by U.S. tariffs may complicate the Bank of Japan's efforts to normalise monetary policy. The BOJ is set to hold a two-day policy meeting early next week.