MNI: Japan Q1 GDP Update Seen Slightly Weaker On Capex Views

Japan's economy contracted more than initially estimated in the January-March quarter as capital investment was likely weaker, economists predicted in the wake of a key government survey.

The median forecast by six economists for revised Q1 GDP is -0.3% on quarter, or an annualised -1.1%, compared with the preliminary estimate of -0.2% q/q, or an annualized -1.0%. The forecasts ranged from -0.2% to -0.3% q/q, and -1.0% to -1.4% annualised, (See: MNI INSIGHT:Weak Q2 GDP Would Reinforce BOJ Easy Policy Stance).

(See: MNI DATA SURVEY: Japan Revised GDP For January-March).

Going forward, economists expect that Japan's economy recovered in the second quarter as pandemic curbs were eased and tourism flows were set to resume in June, but supply-side restrictions and higher energy and food costs remain headwinds, (See: MNI INSIGHT: Weak Corporate Spend A BOJ Virtuous Cycle Concern).

The Cabinet Office will release revised (second preliminary) GDP data for the January-March quarter at 0850 JST on Wednesday, June 8 (2350 GMT on Tuesday, June 7).