TOKYO — The Japanese economy deteriorated more severely than expected in the third quarter, government data released on Monday showed, extending a downturn into a second consecutive three-month period and putting the country in technical recession.

Worsening business confidence appeared to be behind the decline. Companies reduced investment in the quarter and drew down on their inventories rather than increase production, a sign that they may be bracing for tougher times ahead.

In a preliminary estimate, the Cabinet Office said gross domestic product shrank at an annualized rate of 0.8 percent. Economists surveyed by news agencies had expected a contraction of between 0.2 and 0.3 percent, on average.

A darkening outlook for global growth has put Japanese businesses on the defensive. One concern is China, where growth in Asia’s largest economy is slowing, in some sectors markedly, meaning there is less demand for industrial equipment, construction machinery and other capital goods, much of which has been supplied by producers in Japan.