Japan's economy escaped recession last quarter but grew less than first estimated as demand and wages remained weak, the government said on Monday.

The world's third-largest economy is recovering from a blow to consumer and business spending from a sales tax hike on April 1, 2014. Purchases plunged after surging to beat that increase.

The government said the economy grew an annualized 1.5 percent in the final quarter of 2014 compared with its earlier estimate of 2.2 percent growth.