Japan Revises Q2 GDP to Annualised 1.4% Expansion, Outperforming Initial Estimate
The Cabinet Office upgraded Japan's second-quarter growth to an annualised 1.4 per cent, citing stronger than expected business spending and matching the median forecast for non-annualised growth at 0.4 per cent.
Japan reported a revised gross domestic product expansion of 1.4 per cent when calculated on an annualised basis for the April-June quarter, exceeding the initial estimate of 1.1 per cent. The Cabinet Office released data on Tuesday showing business capital expenditures were less weak than previously thought. Capital spending fell 0.9 per cent in the quarter, revised from a projected 1.2 per cent decline and compared against economist forecasts for a 0.8 per cent drop. Non-annualised GDP growth reached 0.4 per cent, aligning with median analyst expectations and surpassing the preliminary reading of 0.3 per cent. Private consumption remained flat, mirroring the initial figures. Domestic demand contributed negatively by knocking off 0.1 percentage point, outperforming a predicted 0.2 per cent drag. External demand added 0.5 percentage point to growth, remaining unchanged from the preliminary assessment.
