Japan GDP Revised Down in Q3


Japan's economy rebounded in the third quarter at a slightly slower pace than initially estimated as companies pulled back on capital spending, worried that yen strength and slowing global growth will hurt exports.

Gross domestic product grew 1.4 percent between July and September from the previous quarter equivalent to an annualised rate of 5.6%, slightly slower than a preliminary 1.5 percent increase.

Capital spending fell a revised 0.4 percent, against a preliminary reading of a 1.1 percent increase and economists' forecast for a 0.1 percent decline. The decline had been signalled by a separate government survey last week.

Consumer spending, which makes up some 60 percent of Japan's GDP, rose 0.7 percent, compared with a preliminary 1.0 percent gain, because spending on such items as cars turned out to be less than initially estimated.

Exports were revised upward, it logged 7.3 percent growth from the preliminary 6.2 percent increase, and public investments, which marked a 1.0 percent fall from a 2.8 percent decrease.

A deepening euro zone debt crisis, persistent yen strength and sputtering global growth are bringing more pain to the Japanese economy with exports, machinery orders and business sentiment slumping.

On the year over year basis (original series) Japan's GDP contracted 0.7 percent in the third quarter.

Past gross domestic product figures were revised due to a change in the measuring method.


TradingEconomics.com
12/9/2011 11:56:56 AM