Does Japan's recession mean Abenomics has failed or needs reinforcing?

Japan slipped into recession, official data showed this week, an unexpected reading that delivered a body blow to Prime Minister Shinzo Abe's policies to revive the world's number three economy, dubbed Abenomics.

So what is Abenomics, has it failed, and what lies in store for Japan's long-suffering economy?

The three-pronged plan, launched shortly after Abe swept to power in late 2012, is meant to drag Japan out of about 15 years of growth-sapping deflation.

It consists of big government spending - such as infrastructure projects - as well as massive monetary easing by the Bank of Japan and an overhaul of the highly regulated economy.

The cornerstone is a 2 per cent inflation target, reversing the price drops that gave consumers an incentive to hold off purchases in the knowledge goods would be cheaper in the future. That held back wage growth and new hiring. Abenomics aims to slay this "deflationary mindset" and spur a virtuous cycle of spending - consumer and corporate - that drives job growth, pushes up wages and powers the economy.

Abenomics initially helped sharply weaken the yen, a plus for exporters such as Sony and Toyota, driving up stock prices and company profits.

That was followed by modest wage hikes and an uptick in consumer spending.