MNI 5 THINGS: Japan Q2 GDP Rebounds on Consumption, Capex

--Japan Q2 Real GDP +0.5% Q/Q; Median +0.2% 

--Japan Q2 Real GDP +1.9% Annualized; Median +1.0% 

--Japan Q2 GDP Posts 1st Q/Q Rise in 2 Quarters 

--Japan Q2 Domestic Demand Contribution +0.6 Pct Point 

--Japan Q2 Net Export Contribution -0.1 Pct Point 

--Japan Q2 Consumption +0.7% Q/Q, +0.4 Point Contribution 

--Japan Q2 Capex +1.3% Q/Q, +0.2 Point Contribution 

--Japan Q2 Private Inventory Contribution 0.0 Pct Point 

--Japan Q2 Public Investment -0.1% Q/Q, -0.0 Point Contribution 

--Japan Q1 Real GDP Unrevised at -0.2% Q/Q

--Japan Q1 Real GDP Revised -0.9% Annualized

     TOKYO (MNI) - Japan's economy for the April-June quarter posted a solid

0.5% rise on quarter, or an annualized 1.9%, backed by stronger consumption and

business investment and rebounding from a slump in the winter months caused by

bad weather, the Cabinet Office said Friday.

     It came in firmer than the median economist forecast for +0.2% q/q, or an

annualized +1.0%. The growth in the second quarter followed a contraction of

0.2% on quarter, or an annualized -0.9% in the first quarter.

     The key points from the latest GDP data:

     * Private consumption, which accounts for about 60% of GDP, rose 0.7% on

quarter in Q2, marking the first quarterly rise in two quarters after a

downwardly revised -0.2% in Q1. The median forecast was +0.3% on quarter,

ranging from +0.2% to +0.4%.

     * Business investment rose 1.3% on quarter in Q2 (the median forecast was

+0.6%) for the seventh straight q/q increase, with the pace of increase

accelerating from +0.5% in Q1.

     * Net exports of goods and services -- exports minus imports and -- made a

negative 0.1 percentage point contribution to the total domestic output (the

median forecast was +0.1 percentage point). It was the first negative

contribution in two quarters after pushing up Q1 GDP growth by 0.1 percentage

point.

     Exports rose 0.2% on quarter in Q2 for the eighth straight q/q rise after

rising 0.6% in Q1 while imports gained at a faster pace of 1.0% after rising

0.2% in the previous quarter.

     * Private-sector inventories made a zero contribution (+0.0 percentage

point) to Q2 GDP, as forecast, following -0.2 percentage point in Q1. 

     * Public investment fell 0.1% on quarter following -0.4%. Its contribution

to GDP was -0.0 percentage point.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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