Japan's economy grew at a slower-than-expected rate of 2.6 percent last quarter, suggesting demand has been slow to pick up despite strong public spending and ultra-lax monetary policies.

More than 3.0 percent growth in annual terms had been forecast for the April-June period, after the economy expanded at a 4.1 percent pace in January-March.

The GDP figure reflects a 0.6 percent increase from the previous quarter, as the recovery was sustained, despite the weaker than anticipated growth.

The data released Monday by the cabinet Office show the strongest contribution to growth coming from public spending and exports, while private investment weakened. (AP)