MNI BRIEF: Japan Q2 GDP Grows 0.8% Q/Q, Stronger Than Expected

Japan's economy grew 0.8% q/q in Q2, or an annualised 3.1%, the first growth in two quarters and higher than market expectations, following strong recovery in, private consumption and capital investment, preliminary GDP data released by the Cabinet Office Thursday showed.

The result follows Q1's revised -0.6% q/q, or an annualised 2.3%, fall in Q1.

The print was in line with Bank of Japan officials view, which had expected private consumption to rebound, and was higher than MNI's median forecast which pointed to a 0.5% q/q rise, or an annualised 2.2%.

Private consumption, which accounts for about 60% of Japan's GDP, rose 1.0% q/q in Q2, the first rise in five quarters, after a revised 0.6% fall in Q1. Business investment rose 0.9% q/q, the first rise in two quarters, following an unrevised 0.4% fall in Q1.

Net exports of goods and services made a negative 0.1 percentage point contribution to total domestic output after pushing Q4 GDP growth down 0.5 pp.

Exports rose 1.4% q/q after falling 4.6% q/q in Q1, while imports gained 1.7% after falling 2.5% in the previous quarter.