REPEAT:MNI 5 THINGS: Japan Q2 GDP Revised Up on Stronger Capex

Repeats Story Initially Transmitted at 05:34 GMT Sep 10/01:34 EST Sep 10

--Japan Q2 GDP Rev +0.7% Q/Q; Prelim +0.5%; MNI Median +0.7%

--Japan Q2 Annualized GDP Rev +3.0% Vs +1.9%; MNI Median +2.9% 

--Japan Q2 Capex Rev +3.1% Q/Q; PRELIM +1.3%; Median +2.8%

--Japan Q2 Capex Contribution Revised +0.5 Point Vs +0.2 Point

--Japan Q2 Consumption Unrevised +0.7% Q/Q 

--Japan Q2 Consumption Contribution Unrevised +0.4 Point 

--Japan Q2 Net Export Contribution Unrevised -0.1 Pct Point 

--Japan Q2 Private Inventories Unrevised +0.0 Pct Point

--Japan Q2 Public Investment Contribution +0.0 Pt Vs -0.0 Pt

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

estimated in the April-June quarter as business investment turned out to be

stronger than expected, revised (second preliminary) data released by the

Cabinet Office on Monday showed.

     Backed by solid consumption and business investment, the economy rebounded

in Q2 from a slump in the winter months caused by bad weather. In Q1, it posted

the first contraction in nine quarters, down 0.2% on quarter, or an annualized

-0.9%.

     * Real Q2 GDP was revised up to +0.7% on quarter, or an annualized +3.0%,

from the preliminary estimate of +0.5% on quarter, or an annualized 1.9%, as

largely expected. The median forecast by economists was +0.7% on quarter, or an

annualized +2.9%.

     * The upward revision came from domestic demand, which was revised up to a

+0.9 percentage point contribution from the preliminary +0.6 percentage point.

     * Capital investment was revised up from the initial reading of 1.3% to

+3.1% on quarter (the MNI median forecast was +2.8%), and was much higher than

+0.7% in the first quarter. Its contribution to the Q2 GDP rose to +0.5

percentage point from a preliminary +0.2 percentage point.

     * Private consumption, which accounts for about 60% of the GDP, was solid

in Q2 after many households were hit by a surge in fresh vegetable prices and

weak real income gains in the previous three months. It rose an unrevised 0.7%

on quarter in Q2, rebounding from -0.2% in Q1. It pushed up the Q2 GDP by an

unrevised 0.4 percentage point.

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

at -0.1 percentage point.

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

output was unrevised at +0.0 percentage points while the contribution of public

investment was revised up slightly to +0.0 percentage point from -0.0 percentage

point.

     * Japan's modest economic recovery is expected to continue in coming

quarters. The average economist forecast for Q3 GDP growth is an annualized

1.45%, according to the latest monthly ESP Survey of 39 economists by the Japan

Center for Economic Research conducted from July 25 to Aug. 1.

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