Japan GDP Growth Slows to 0.3% in Q3


The Japanese economy advanced 0.3 percent on quarter in the three months to September of 2017, following a 0.6 percent expansion in the previous period and matching market consensus, the preliminary estimate showed. Growth was mainly supported by exports while business spending rose at a slower pace and private consumption fell for the first time in near two years.

The positive contribution to GDP largely came from net exports (0.5 percentage points). On the other hand, household consumption substracted 0.3 percentage points from the growth while capital expenditure and government spending gave no contribution to growth. Meanwhile, changes in private inventories added 0.2 percentage points from quarterly growth. 

Private consumption declined by 0.5 percent, following a 0.7 percent increase in the second quarter and worse than expectations of a 0.4 percent drop. It marked the first decline in private spending since the fourth quarter 2015, due to adverse weather.

Government expenditure contracted 0.1 percent, after a 0.6 percent growth in the prior three months. Meanwhile, public investments slumped by 2.5 percent, after increasing 5.8 percent in Q2.

Business spending rose 0.2 percent, much slower than a 0.5 percent growth  in the June quarter while market expected a 0.3 percent rise. Meantime, private residential investment contracted by 0.9 percent, reversing from a 1.1 percent  gain in the third quarter.

Exports of goods and services grew by 1.5 percent, swinging from a 0.2 percent fall in Q2; while imports dropped by 1.6 percent, following a 1.4 percent gain in the previous three-month period.

On an annualised basis, the GDP expanded 1.4 percent, compared to an upwardly revised 2.6 percent growth in the third quarter and slightly above estimates of a 1.3 percent expansion. The Japanese economy has now expanded in seven straight quarters, the longest period of uninterrupted growth in more than a decade.

Japan GDP Growth Slows to 0.3% in Q3


Cabinet Office l Rida Husna | rida@tradingeconomics.com
11/15/2017 2:13:10 AM