MNI 5 THINGS: Japan Q3 GDP Contracts On Consumption, Capex

--Japan Q3 Real GDP -0.3% Q/Q; Median -0.2% 

--Japan Q3 Real GDP -1.2% Annualized; Median -0.9% 

--Japan Q3 GDP Posts 1st Q/Q Drop in 2 Quarters 

--Japan Q3 Domestic Demand Contribution -0.2 Pct Point 

--Japan Q3 Net Export Contribution -0.1 Pct Point 

--Japan Q3 Consumption -0.1% Q/Q, -0.1 Point Contribution 

--Japan Q3 Capex -0.2% Q/Q, -0.0 Point Contribution 

--Japan Q3 Private Inventory Contribution -0.1 Pct Point 

--Japan Q3 Public Investment -1.9% Q/Q, -0.1 Point Contribution 

--Japan Q2 Real GDP Revised at +0.8% Q/Q 

--Japan Q2 Real GDP Unrevised +3.0% Annualized

     TOKYO (MNI) - Japan's economy posted the first contraction in two quarters

in the July-September period, down 0.3% on quarter, or an annualized -1.2%,

weighed by private consumption, capital investment and exports following recent

natural disasters, preliminary gross domestic product data released Wednesday by

the Cabinet Office showed.

     The data came in weaker than the median economist forecast for  a

contraction of 0.2% q/q, or an annualized -0.9%. The downturn in the third

quarter followed a gain of 0.8% on quarter, or an annualized +3.0% in the second

quarter.

     The key points from the latest GDP data:

     - Private consumption, which accounts for about 60% of Japan's GDP, fell

0.1% on quarter in Q3, marking the first quarterly drop in two quarters after an

unrevised +0.7% in Q2. The median forecast was -0.2% on quarter, ranging from

0.0% to -0.5%.

     - Business investment fell 0.2% on quarter in Q3 (the median forecast was

+0.0%) for the first q/q drop in eight quarters, with the decreased reversed

from +3.1% in Q2.

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

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

median forecast was -0.1 percentage point). It was the second straight negative

contribution after pushing down Q2 GDP growth by 0.1 percentage point.

     Exports fell 1.8% on quarter in Q3 for the first drop in six quarter after

rising 0.3% in Q2 while imports fell 1.4% after rising 1.0% in the previous

quarter.

     - Private-sector inventories contributed a negative 0.1 percentage point to

Q3 GDP following +0.0 percentage point in Q2.

     - Public investment fell 1.9% on quarter following -0.3%. Its contribution

to GDP was -0.1 percentage point.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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