MNI: Japan Q4 GDP Revised Up Sharply on Capex, Inventories

--Japan Q4 GDP Rev +0.4% Q/Q; Prelim +0.1%; MNI Median +0.2%

--Japan Q4 Annualized GDP Rev +1.6% Vs +0.5%; MNI Median +0.8%

--Japan Q4 Capex Rev +1.0% Q/Q; PRELIM +0.7%; Median +1.2%

--Japan Q4 Capex Contribution Revised +0.2 Point Vs +0.1 Point

--Japan Q4 Private Inventories +0.1 Pct Point; Prelim -0.1 Pt

     TOKYO (MNI) - Japan's economic growth slowed in the final quarter of 2017

from unusually strong gains in the previous two quarters, but it was revised up

sharply to an above-potential rate, indicating the modest recovery is sustained,

data released Thursday showed.

     The following are the key points from the revision released by the Cabinet

Office, which is based on the latest quarterly government business survey on

capex and inventories as well as other indicators.

     * The Q4 real gross domestic product was revised up sharply to +0.4% on

quarter, or an annualized +1.6%, from the preliminary estimate of +0.1% on

quarter, or an annualized +0.5%, as business investment and private inventories

turned out to be firmer than initially reported. It came in stronger than the

MNI median economist forecast of +0.2% q/q, or an annualized 0.8%.

     * The growth pattern was the same as reported last month: a rebound in

consumer spending and continued solid capital investment offset weak net exports

and public works spending.

     * The upward revision came from domestic demand. Its contribution to

overall growth was revised up to +0.4 percentage point from the preliminary

estimate of +0.1 percentage points.

     * Business investment was revised up to +1.0% on quarter, or an annualized

+4.2%, from the initial reading of +0.7% on quarter, or an annualized +2.8%. It

was the fifth consecutive quarter-on-quarter growth.

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

output was revised up to +0.1 percentage point from -0.1 percentage point.

     * Public investment was revised up to a drop of 0.2% on quarter in Q4 from

a preliminary 0.5% fall. It made a negative contribution of -0.1 percentage

point, as reported earlier.

     * Net exports of goods and services -- exports minus imports -- made an

unrevised negative 0.0 percentage point contribution to total domestic output.

It was the first negative contribution in two quarters.

     * Private consumption, which accounts for about 60% of GDP, rose an

unrevised 0.5% on quarter in Q4, marking the first rise in two quarter after

-0.6% in Q3. It pushed up the Q4 GDP growth by 0.3 percentage point, as reported

last month.

     * Q3 GDP was unrevised at +0.6% q/q, but was revised up to an annualized

+2.4% from +2.2%.

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

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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