TOKYO- Japan's economy expanded at a slower pace than initially thought in January-March, reflecting reductions of oil-sector inventories and weaker growth of consumer spending, the Cabinet Office said Thursday.

The country's seasonally adjusted real gross domestic product in January-March rose a revised 0.3 percent from the previous quarter, for an annualized increase of 1 percent.

The quarterly and annual rates were down from the preliminary readings released last month of 0.5 percent and 2.2 percent, respectively.

Though revised downward, real GDP still marked positive growth for the fifth straight quarter, the longest expansionary streak in about 11 years.

"Excluding the effects of inventory fluctuations, GDP achieved the same level of growth as in the preliminary report," a Cabinet Office official said.

In nominal terms, January-March GDP shrank 0.3 percent for an annualized fall of 1.2 percent, also weaker than preliminary falls of 0.03 percent and 0.1 percent, respectively.

Private-sector inventories pushed down real GDP by 0.1 percentage point, against the 0.1-point positive contribution in the preliminary report, due in part to a fall in crude oil imports stemming from market price hikes and major oil companies' efforts to reduce inventories ahead of periodic plant repairs.

Private consumption rose 0.3 percent, slower than the previously reported 0.4 percent increase, reflecting sluggish expenditures on automobiles and hotel services.

Meanwhile, capital expenditures expanded 0.6 percent, revised upward from the preliminary 0.2 percent rise thanks to increased demand in the construction and retail industries.

Housing investment went up 0.3 percent and public investment declined 0.1 percent.

Exports climbed 2.1 percent and imports rose 1.4 percent, both unchanged from the preliminary readings.

Domestic demand pushed up real GDP by 0.1 point, down from the preliminary 0.4 point, while external demand made the unchanged positive contribution of 0.1 point. (Jiji Press)