TOKYO (Kyodo) -- Japan's economy shrank an annualized real 0.2 percent in January to March, revised up from the preliminary report but still marking the first contraction in four quarters, with consumption stagnant amid rising prices, government data showed Monday.

Despite the upward revision from the earlier reading of a 0.7 percent decline, the data underscored that Japan lacked a growth engine even before the full impact of U.S. President Donald Trump's higher tariffs set in, while inflation hit household sentiment.

Real gross domestic product, adjusted for inflation, contracted 0.04 percent from the previous quarter, compared with an earlier reading of a 0.2 percent decrease, the Cabinet Office said. GDP is the total value of goods and services produced in a country.

Private consumption, which accounts for more than half of Japan's GDP, grew 0.1 percent in the January-March period, against an initially reported 0.04 percent rise, supported by dining out and game software.

Private-sector inventories contributed 0.6 percentage point to GDP, compared with a preliminary figure of 0.3 point, due to a rise in stocks of crude oil and natural gas.

Meanwhile, capital investment, a key component of domestic demand, was downgraded to 1.1 percent from an earlier reading of 1.4 percent, weighed down by weak software spending.

Among other crucial components, exports dropped 0.5 percent in the first quarter of 2025, slightly revised from a 0.6 percent decrease.

Economists said the revised GDP data pointed to a loss of growth momentum, with exporters hit by the U.S. tariffs, particularly those targeting Japan's critical auto industry since April.

Yuichi Kodama, chief economist at Meiji Yasuda Research Institute, said private consumption has been lackluster following price hikes, especially for food, while corporate investment has slowed as uncertainty over U.S. trade policies mounts.

"There appears to be no strong driver, as consumer spending and private investment -- two main pillars of domestic demand -- remain sluggish, just like exports," Kodama said, adding Japan's economy is expected to continue deteriorating down the road.

Nominal GDP grew at an annualized rate of 3.6 percent, compared with a preliminary reading of 3.1 percent.