* Q1 GDP revised to annualised +2.2% vs forecast +2.1%
* Capex revised up to +0.3% q/q vs prelim -0.3%
* Global trade war, weak foreign and domestic demand pose risks (Adds Economy Watchers Survey in 10 and 11 paragraphs)
By Kaori Kaneko and Ritsuko Shimizu
TOKYO, June 10 (Reuters) - Japan's economy grew slightly faster than initially estimated in the first quarter, thanks to stronger capital spending, but analysts say global trade tensions remain a drag on growth and raise risks to the outlook for the export-reliant nation.
The world's third-largest economy is facing growing downward pressure as the U.S.-China trade war intensifies and global demand wanes, while at home consumers are reluctant to spend.
"Although capital spending was revised up, it is expected to deteriorate as foreign demand continues to weaken due to the U.S.-China trade tensions," said Hiroaki Mutou, chief economist at Tokai Tokyo Research Institute.
"Consumer spending remains weak as wages have not risen as previously expected. If external demand worsens further, it could dampen both corporate and consumer sentiment and rein in their spending."
The economy grew an annualised 2.2% in January-March, stronger than economists' forecast for 2.1% annualised growth and the preliminary reading of the same rate of expansion, Cabinet Office data showed on Monday. In the fourth quarter, gross domestic product (GDP) rose an annualised 1.8%.
The annualised growth rate translates into quarter-on-quarter expansion of 0.6% from the previous quarter, compared with a 0.5% growth in the initial reading and the median forecast.
The capital spending component of GDP rose 0.3% from the previous quarter, versus the median forecast for a 0.5% increase and the preliminary 0.3% fall.
Private consumption, which accounts for some 60% of GDP fell 0.1% in the first quarter from the previous three months, unchanged from the preliminary reading. The revised GDP confirmed imports fell faster than exports in the first quarter, underlining the broadening pressure across the economy as consumers grow more cautious.
That may explain why a separate Cabinet Office survey showed a worsening in sentiment in a key group of employees. The called "economy watchers" sentiment index, which measures business confidence among workers such as taxi drivers, hotel workers and restaurant staff worsened to about a three year low in May.
Group of 20 finance leaders on Sunday said that trade and geopolitical tensions have "intensified", raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening U.S.-China trade conflict.