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MNI 5 THINGS: Japan Q2 GDP Revised Up on Stronger Capex

--Japan Q2 GDP Rev +0.7% Q/Q; Prelim +0.5%; MNI Median +0.7%
--Japan Q2 Annualized GDP Rev +3.0% Vs +1.9%; MNI Median +2.9% 
--Japan Q2 Capex Rev +3.1% Q/Q; PRELIM +1.3%; Median +2.8%
--Japan Q2 Capex Contribution Revised +0.5 Point Vs +0.2 Point
--Japan Q2 Consumption Unrevised +0.7% Q/Q 
--Japan Q2 Consumption Contribution Unrevised +0.4 Point 
--Japan Q2 Net Export Contribution Unrevised -0.1 Pct Point 
--Japan Q2 Private Inventories Unrevised +0.0 Pct Point
--Japan Q2 Public Investment Contribution +0.0 Pt Vs -0.0 Pt
     TOKYO (MNI) - Japan's economy expanded at a much faster pace than initially
estimated in the April-June quarter as business investment turned out to be
stronger than expected, revised (second preliminary) data released by the
Cabinet Office on Monday showed.
     Backed by solid consumption and business investment, the economy rebounded
in Q2 from a slump in the winter months caused by bad weather. In Q1, it posted
the first contraction in nine quarters, down 0.2% on quarter, or an annualized
-0.9%.
     * Real Q2 GDP was revised up to +0.7% on quarter, or an annualized +3.0%,
from the preliminary estimate of +0.5% on quarter, or an annualized 1.9%, as
largely expected. The median forecast by economists was +0.7% on quarter, or an
annualized +2.9%.
     * The upward revision came from domestic demand, which was revised up to a
+0.9 percentage point contribution from the preliminary +0.6 percentage point.
     * Capital investment was revised up from the initial reading of 1.3% to
+3.1% on quarter (the MNI median forecast was +2.8%), and was much higher than
+0.7% in the first quarter. Its contribution to the Q2 GDP rose to +0.5
percentage point from a preliminary +0.2 percentage point.
     * Private consumption, which accounts for about 60% of the GDP, was solid
in Q2 after many households were hit by a surge in fresh vegetable prices and
weak real income gains in the previous three months. It rose an unrevised 0.7%
on quarter in Q2, rebounding from -0.2% in Q1. It pushed up the Q2 GDP by an
unrevised 0.4 percentage point.
     * The contribution of net exports -- exports minus imports -- was unrevised
at -0.1 percentage point.
     * The contribution of private-sector inventories to the total domestic
output was unrevised at +0.0 percentage points while the contribution of public
investment was revised up slightly to +0.0 percentage point from -0.0 percentage
point.
     * Japan's modest economic recovery is expected to continue in coming
quarters. The average economist forecast for Q3 GDP growth is an annualized
1.45%, according to the latest monthly ESP Survey of 39 economists by the Japan
Center for Economic Research conducted from July 25 to Aug. 1.
--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
[TOPICS: MAJDS$,M$A$$$,M$J$$$,MT$$$$]

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