MNI DATA IMPACT: Japan Q1 GDP Revised Higher on Capex

--Japan Q1 GDP Rev +0.6% Q/Q; Prelim +0.5%; MNI Median +0.6% 

--Japan Q1 Annualized GDP Rev +2.2% Vs +2.1%; MNI Median +2.2% 

--Japan Q1 Capex Rev +0.3% Q/Q; Prelim -0.3%; Median +0.5% 

--Japan Q1 Capex Contribution Revised At +0.1 Point Vs. -0.0 pt 

--Japan Q1 Consumption Unrevised -0.1% Q/Q

--Japan Q1 Consumption Contribution Unrevised -0.0 Point 

--Japan Q1 Net Export Contribution Unrevised +0.4 Pct Point 

     TOKYO (MNI) - Japan's economy grew at a faster pace than initially

estimated in the January-March quarter, with business investment stronger than

initially seen, revised (second preliminary) data released by the Cabinet Office

Monday showed.

     The economy rose 0.6% on quarter, or an annualized 2.2%, in Q1 thanks to

stronger capital investment and positive contribution from net exports, revised

from +0.5% on quarter, or an annualized +2.1%.

     --Real Q1 GDP was revised up to +0.6% on quarter, or an annualized +2.2%,

from the preliminary estimate of +0.5% and 2.1% respectively, in line with

analysts expectations.

     --The upward revision came mainly from higher capital investment, revised

up to a 0.3% gain (the MNI median forecast was +0.5%) from a preliminary -0.3%

following. There was a 2.7% gain in Q4.

     --Contribution from capital investment was revised up to +0.1 percentage

point from a rounded -0.0 percentage point.

     --Private consumption, which accounts for about 60% of GDP, was unrevised

at -0.1% on quarter. It pushed down the overall figure by an unrevised rounded

-0.0 percentage point.

     --The contribution of net exports -- exports minus imports -- was unrevised

at +0.4 percentage point.

     --The contribution of private-sector inventories to the total domestic

output was unrevised at +0.1 percentage point and the contribution of public

investment was also unrevised at +0.1 percentage point.

     --Japan's economy in the first quarter expanded despite the weak real

export index (-1.7% on quarter) and weak industrial production (-2.5% on

quarter).

     --Bank of Japan economists are focused on the quarter-on-quarter change of

major economic components, such as real export index and factory output, looking

for confirmation that Japan's economy will return to a moderate recovery path in

or after mid-2019.

     --The average economist forecast for Q2 GDP growth is annualized at 1.3%,

according to the latest monthly ESP Survey of 38 economists by the Japan Center

for Economic Research conducted from April 26 to May 9.

--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$$$,M$J$$$]