Japan Q2 GDP Growth Revised Down to 0.6%


The Japanese economy advanced 0.6 percent quarter-on-quarter in the June quarter of 2017, below preliminary estimates of a 1.0 percent expansion. Business spending grew much slower than expected and private consumption rose slightly less than anticipated.

Despite the downward revision, Japan has maintained a sixth straight quarter of growth, the longest run of economic expansion since 2006.

In the three months to June, household consumption added 0.5 percentage points to growth, private non-residential investment/business spending contributed 0.1 percentage points and government spending added 0.1 percentage points. In contrast, net trade subtracted 0.3 percentage points from the growth. Meantime, changes in private inventories made no contribution to growth.

Compared to the first quarter, private consumption went up 0.8 percent (less than a 0.9 percent rise in the preliminary estimate and compared to a 0.4 percent increase in the three months to March).

Government expenditure rose 0.4 percent (compared to a 0.3 percent gain in the preliminary estimate and following a 0.1 percent contraction in the prior quarter). Public investments jumped 6.0 percent (faster than a 5.1 percent rise in the preliminary estimate and after a 0.4 percent rise in Q1).

Private non-residential investment increased by 0.5 percent (much weaker than the preliminary figures of a 2.4 percent gain but at the same pace as in the preceding quarter). Meanwhile, private residential investment expanded 1.3 percent (compared to the preliminary estimates of a 1.5 percent increase and following a 1.0 percent growth in the March quarter).

Exports of goods and services declined by 0.5 percent (the same as in the preliminary figures and after increasing 1.9 percent in Q1; imports rose 1.4 percent (unchanged from the preliminary estimates and following a 1.3 percent rise in Q1).

On an annualised basis, the economy grew by 2.5 percent, much weaker than preliminary estimates of a 4.0 percent expansion.

Japan Q2 GDP Growth Revised Down to 0.6%


Cabinet Office l Rida Husna | rida@tradingeconomics.com
9/8/2017 1:52:04 AM