MNI DATA IMPACT: Japan Q3 GDP Posts 1st Growth in 4 Quarters

Japan's economy grew for the first time in four quarters in Q3, rising 5.0 q/q, or an annualized 21.4%, boosted by private consumption and net exports, according to preliminary GDP data released by the Cabinet Office on Monday.

The Q3 growth was slightly higher than the MNI median forecast which pointed to growth of 4.4% q/q, or an annualized 18.6%. The growth followed a drop of 8.2% q/q, or an annualized -28.8% in Q2.

The key points from the latest GDP data:

--Private consumption, which accounts for about 60% of Japan's GDP, rose 4.7% q/q in Q3, after a revised 8.1% fall in Q2. The median forecast was for a 4.9% q/q rise.

--Business investment fell 3.4% q/q in Q3, the second straight drop following -4.5% in Q2. The median forecast was for a 3.2% fall.

--Net exports of goods and services, exports minus imports, made a positive 2.9 percentage point contribution to total domestic output, the first positive contribution in three quarters after pushing Q2 GDP growth down by 3.3 percentage points.

--Exports rose 7.0% on a quarterly basis in Q3 after falling 17.4% in Q2. Imports fell 9.8% after rising 2.2% in the previous quarter.

--Private-sector inventories contributed a negative 0.2 percentage points to Q3 GDP following +0.3 percentage poinst in Q2, while public investment rose 0.4% on quarter, contributing +0.0 pp to GDP.