Japan¡¯s economy slipped back into reverse over the summer, underscoring the fragility of the country¡¯s recovery and backing the case for continued support from the Bank of Japan and the government.

Gross domestic product shrank at an annualized pace of 2.1% in the third quarter, largely on the back of falling business spending, a lack of recovery in consumer spending and higher import costs, the Cabinet Office reported Wednesday.

The contraction was much deeper than economists¡¯ estimate of a 0.4% shrinkage. The yen weakened slightly against the dollar following the release.