MNI BRIEF: Japan Q2 GDP Rises 1.5% Q/Q; Annualized 6.0%

Japan's economy grew for a second straight quarter in Q2, boosted by stronger net exports, although capital investment and private consumption slowed, preliminary GDP data released by the Cabinet Office Tuesday showed. Q2 GDP rose 1.5% q/q, or an annualized 6.0%, following a revised 0.9% q/q gain in Q1.

The Q2 growth was much stronger than the MNI median forecast that pointed to a rise of 0.8% q/q, or an annualized +3.3%, while private consumption, which accounts for about 60% of Japan's GDP, fell 0.5% q/q, after a revised 0.6% in Q1; business investment was unchanged q/q in Q2 following a revised 1.8% in Q1. The median forecast was for a 0.4% rise.

Net exports of goods and services -- exports minus imports -- made a positive 1.8% percentage point contribution to total domestic output after pushing Q1 GDP growth down 0.3 percentage point. Exports rose 3.2% on quarter in Q2 after falling 3.8% q/q in Q1. Imports fell 4.3% in Q2 after falling 2.3% in the previous quarter.

Private-sector inventories contributed a negative 0.2 percentage point to Q2 GDP following +0.4 percentage point in Q1, while public investment rose 1.2% on quarter, contributing +0.1 pp to GDP.