MNI BRIEF: Japan Q3 GDP Posts 2nd Straight Rise
MNI (TOKYO) - Japan's economy grew for the second straight quarter over Q3, up 0.2% q/q, or an or an annualised 0.9%, but slowed from Q2's revised 0.5% q/q gain following weaker capital investment and net exports, preliminary GDP data released by the Cabinet Office showed on Friday.
The Q3 result was largely in line with the MNI median forecast that pointed to a rise of 0.2% q/q, or an annualised +0.8%.
Private consumption, which accounts for about 60% of Japan's GDP, rose 0.9% q/q in Q3 for the second straight rise after Q2's revised 0.7% rise. Business investment fell 0.2% q/q, the first drop in two quarters following a revised Q2 0.9% rise.
Net exports of goods and services made a negative 0.4 percentage point contribution to total domestic output after pushing Q2 GDP growth down 0.1 pp. Exports rose 0.4% q/q after rising 2.6% q/q in Q2. Imports rose 2.1% in Q3 after rising 2.9% in the previous quarter.
Private-sector inventories contributed a positive 0.1 pp to Q3 GDP following -0.1 pp in Q2, while public investment fell 0.9% on quarter, contributing -0.0 pp to GDP.
Q3's result will support a policy rate increase, however Bank of Japan officials also want to examine wage hikes and prices developments. (See MNI BOJ WATCH: Ueda Opens Door To Dec Hike, Eyes U.S., Mkts)