MNI BRIEF: Japan Q1 GDP Revised Higher On Stronger Capex

Japan's economy grew 0.7% q/q or 2.7% annualised in Q1, a faster pace than expectations as capital investment revised up from initial estimates, according to second preliminary data released by the Cabinet Office Thursday.

The first preliminary estimates had Q1 GDP at 0.4% q/q and 1.6% annualised. In the revised data, capital investment rose 1.4% q/q, revised up from 0.9% in the preliminary release. The positive contribution from capital investments was unrevised at 0.2pp.

Private consumption, which accounts for about 60% of Japan's GDP, was revised down to 0.5% q/q from 0.6%, pushing overall GDP revised rounded to 0.3pp, unchanged from its initial estimate. The contribution of net exports – exports minus imports – was unrevised at -0.3pp.

Private-sector inventories to total domestic output contributed a revised 0.4pp, up from 0.1pp. Public investment, meanwhile, rose 1.5% q/q, revised down from 2.4%, but the GDP contribution of public investment was unrevised at 0.1 pp.