MNI BRIEF: Japan's Q1 GDP Revised Higher On Spending

Japan's economy contracted at a slower pace than initially estimated in Q1 as private consumption was revised up, although capital and public investment were revised down, second preliminary data released by the Cabinet Office on Wednesday showed.

The economy contracted 0.1% q/q, or an annualised -0.5%, compared with the first preliminary estimates of -0.2% q/q and an annualized -1.0%, better than a survey of analysts by MNI expected, (See MNI: Japan Q1 GDP Update Seen Slightly Weaker On Capex Views).

Private consumption, which accounts for about 60% of Japan's GDP, was revised up +0.1% q/q from flat q/q, pushing overall GDP higher, but the revised data showed capital investment fell 0.7% q/q, from a 0.5% dip. The positive contribution from capital investment was revised to -0.1 pp from +0.1 pp.