MNI DATA IMPACT: Japan Q1 GDP Posts 2nd Rise On Net Exports

--Japan Q1 Real GDP +0.5% Q/Q; MNI Median -0.1% 

--Japan Q1 Real GDP +2.1% Annualized; MNI Median -0.2% 

--Japan Q1 GDP Posts 2nd Straight Rise 

--Japan Q1 Domestic Demand Contribution +0.1 PP 

--Japan Q1 Net Export Contribution +0.4 PP 

--Japan Q1 Public Investment +1.5% Q/Q, +0.1 Point Contribution 

--Japan Q4 Real GDP Revised to +0.4% Q/Q, +1.6% Annualized

     TOKYO (MNI) - Japan's economy posted an unexpected second straight gain in

the January-March period, up 0.5% on quarter, or an annualized +2.1%, boosted by

stronger net exports and firm private demand, preliminary GDP data released

Monday by the Cabinet Office showed.

     The data came much stronger than the MNI's survey median forecast for a

growth of -0.1% q/q, or the annualized forecast of -0.2%. The growth in the

first quarter followed a Q4 rise of 0.4% Q/Q, or an annualized +1.6%.

     The key points from the latest GDP data:

     --Private consumption, which accounts for about 60% of Japan's GDP, fell

0.1% on quarter in Q1, after a revised +0.2% in Q4. The median forecast was

-0.1% on quarter, ranging from -0.2% to +0.1%.

     --Business investment fell 0.3% on quarter in Q1 (the median forecast as

-2.2%), also the first q/q drop in two quarters, with the decrease reversed from

+2.5% in Q4.

     --Net exports of goods and services -- exports minus imports -- made a

positive 0.4 percentage point contribution to the total domestic output (the

median forecast was +0.3 percentage point). It was the first positive

contribution in four quarters after pushing Q4 GDP growth down by 0.3 percentage

point.

     --Exports fell 2.4% on quarter in Q1 after rising 1.2% in Q4. Imports fell

4.6% after rising 3.0% in the previous quarter.

     --Private-sector inventories contributed a positive 0.1 percentage point to

Q1 GDP following +0.1 percentage point in Q4.

     --Public investment rose 1.5% on quarter following -1.4%. Its contribution

to GDP was +0.1 percentage point.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$,MT$$$$]