MNI BRIEF: Japan Q1 GDP To Be Revised Up On Stronger Capex

Capital investment is expected to be revised up slightly from initial estimates, which should drive up Japan's Q1 GDP, economists predicted following the publication of a government survey.

The median forecast by six economists for revised Q1 GDP is 0.5% q/q, or an annualised 1.8%, compared with the preliminary estimate of 0.4% q/q, or an annualised +1.6%.

The Cabinet Office will release revised (second preliminary) GDP data for Q1 on June 8.

Economists expect Q1 capex to be revised up to 1.3% q/q from the initial 0.9% reading , with forecasts ranging from 0.9% to 1.6%, based on the results of the Ministry of Finance's survey released Thursday (see: MNI BRIEF: Japan Q1 Capex Up Q/Q, GDP Revised Higher).

Private consumption is forecast by economists to be unrevised at 0.6% on quarter. Economists expected public investment to be revised to 2.2% q/q in Q1 from 2.4% in Q3. The contribution of private-sector inventories to the total domestic output is forecast to be unrevised at 0.1pp.