Japan’s economy expands annualised 0.9% in Q3 on tepid capex
2024.11.14 19:36
By Makiko Yamazaki and Satoshi Sugiyama
TOKYO (Reuters) – Japan’s economy expanded by an annualised 0.9% over the July-September quarter, government data showed on Friday, slowing from the previous three months due to tepid capital spending.
The slower growth data highlights Japan’s frail economic recovery, as domestic demand has not fully picked up while a growing risk of a slowdown in the U.S. and further weakness in China’s economy could weigh on exports ahead.
The increase in gross domestic product compared with a median market estimate of a 0.7% gain, and followed a revised 2.2% growth in the previous quarter, the data showed.
The reading translates into a quarterly rise of 0.2%, versus a 0.2% increase expected by economists in a Reuters poll.
Private consumption, which accounts for more than half of the economic output, rose 0.9%, compared with a market estimate of a 0.2% increase.
It picked up slightly from the revised 0.7% rise of the previous quarter, indicating that rising wages are prompting households to spend more.
Capital spending, a key driver of private demand-led growth, fell 0.2% in the third quarter, matching a decrease of 0.2% in the Reuters poll.
Net external demand, or exports minus imports, knocked 0.4 point off growth, reversing a 0.1 point negative contribution in the April-June period.
The Bank of Japan maintained ultra-low interest rates last month and said risks around the U.S. economy were somewhat subsiding, signalling that conditions are becoming conducive to raise interest rates again.
