Japan’s Q2 GDP growth revised down slightly on consumption, capex
2024.09.08 20:33
By Satoshi Sugiyama
TOKYO (Reuters) -Japan’s economy expanded in April-June at a slightly slower pace than initially reported, largely due to downward revisions in corporate and personal spending, government data showed on Monday.
Japan’s GDP expanded by an annualised 2.9% in the second quarter from the previous three months, the Cabinet Office’s revised data showed, versus economists’ median forecast for a 3.2% growth and a 3.1% rise in the preliminary estimate.
The revised figure translates into a quarter-on-quarter expansion of 0.7% in price-adjusted terms, compared with a 0.8% rise issued last month.
Analysts expect the Japanese economy will continue to improve gradually supported by positive trends in wages and personal and corporate spending, while risks remain from external factors such as a potential slowdown in the U.S. and Chinese economy.
The Bank of Japan in July raised its key interest rate to 0.25% from 0-0.1%, and markets are keen to gauge the timing of its next move based on consumption and other data.
None of the economists polled by Reuters last month predicted a rate hike at the next policy-setting meetings on Sept. 19-20, while a majority anticipated a tightening by year’s end.
The capital expenditure component of GDP, a barometer of private demand-led strength, rose 0.8% in the second quarter, revised down from a 0.9% uptick in the initial estimate. Economists had estimated a 1.0% rise.
Private consumption, which accounts for more than half of the Japanese economy, increased 0.9%, versus the preliminary reading of 1.0% growth.
External demand, or exports minus imports, knocked 0.1 percentage point off growth, unchanged from the preliminary reading. On the other hand, domestic demand contributed 0.8 percentage point.
