By Jonathan Davies
The Japanese economy contracted by 0.4% in second quarter compared with the first three months of the year.
It comes as a huge blow to the government's economic reform policy, which includes monetary and fiscal stimulus.
Consumer spending and exports were the biggest contributors to the shrinking of the economy.
Compared with the second quarter in 2014, the economy shrank 1.6%, following growth of 4.5% in the first quarter.
Japan's economics minister Akira Amari said bad weather hit consumer spending and exports fells to the US and China.