TOKYO, March 11 Reuters Japan39;s economy avoided a technical recession, revised government data showed on Monday, even though the upward change in the fourth quarter was weaker than expected and highlighted concerns about the sluggish economic recovery.

Japan39;s revised gross domestic product GDP expanded at an annualised clip of 0.4 in the OctoberDecember period from the previous quarter, better than the initial estimate for a 0.4 contraction, according to the Cabinet Office.

It was, however, below economists39; median forecast for a 1.1 uptick in a Reuters poll.

On a quarteronquarter basis, GDP grew 0.1, compared with the initial reading of a drop of 0.1. drop and a median forecast for a 0.3 rise.

The headline is an upward revision, but domestic demand is remains lacklustre, particularly in consumption, said Saisuke Sakai, senior economist at Mizuho Research and Technologies.

The upward revision came amid growing market expectations the Bank of Japan could ditch its negative interest rates as early as this month, fuelled in part by board members39; recent hawkish comments that Japan was moving towards the central bank39;s 2 inflation target.

Capital expenditure, which increased 2.0 quarteronquarter, anchored the upward revision. It was better than better than the preliminary 0.1 decrease but still below a median market forecast of a 2.5 rise.

Private consumption, which makes up about 60 of Japan39;s economy, fell 0.3 in OctoberDecember, slightly worse than…