MNI BRIEF: Japan Q3 GDP To Rise 0.2% Q/Q, 0.8% Annualised

MNI (TOKYO) - Japan's economy for the July-September period is expected to post its second straight quarterly rise up 0.2% q/q, or an annualised 0.8%, but slowed from the previous quarter's 0.7% q/q increase due to weaker private consumption and capital investment, according to private economist forecasts.  

Economists predicted private consumption, which accounts for about 60% of the GDP, will rise 0.2% q/q following, down from Q2's 0.9% gain, due to higher prices and despite a rise in real wages.

The Cabinet Office will release preliminary Q3 GDP data on Nov 15 at 0850 JST (Nov 14, 2350 GMT).

Capital investment during Q3 is expected to have fallen 0.3% q/q, reversing from Q2's 0.8% gain. Public investment is expected to remain unchanged q/q vs. Q2’s 0.1% fall.

Net exports of goods and services are expected to have made a positive 0.1 percentage point contribution to the total domestic output, after falling 0.1 pp contribution in the second quarter. Going forward, economists expect Japan’s economy to again rise in Q4 due to a recovery of capital investment and private consumption.

The Bank of Japan on Thursday kept its GDP view largely unchanged at 0.6% growth this fiscal year, following the Board's decision to hold the policy rate at 0.25%. (See MNI BOJ WATCH: Ueda Opens Door To Dec Hike, Eyes U.S., Mkts)