Thursday, August 8, 2019 - 20:24

MNI DATA IMPACT: Japan Q2 GDP Posts 3rd Rise; But Slows

--Japan Q2 Real GDP +0.4% Q/Q; MNI Median +0.1%
--Japan Q2 Real GDP +1.8% Annualized; MNI Median +0.5%
--Japan Q2 GDP Posts 3rd Straight Rise
--Japan Q2 Domestic Demand Contribution +0.7 PP
--Japan Q2 Net Export Contribution -0.3 PP
--Japan Q2 Public Investment +1.0% Q/Q, +0.0 Point Contribution
--Japan Q1 Real GDP Revised to +0.7% Q/Q, +2.8% Annualized

TOKYO (MNI) - Japan's economy posted a third straight quarter growth in the April-June period, up 0.4% q/q, or an annualized +1.8%, boosted by stronger private consumption and capital investment, preliminary GDP data released Friday by the Cabinet Office showed.

Growth slowed slightly from Q1, which rose a revised 0.7% q/q, or an annualized 2.8%. The quarterly growth was much stronger than the MNI median forecast for a growth of 0.1% q/q, or the annualized forecast of 0.5%.

The key points from the latest GDP data:

--Private consumption, which accounts for about 60% of Japan's GDP, rose 0.6% q/q in Q2, after a revised +0.1% in Q1. The median forecast was +0.7% q/q, ranging from +0.4% to +1.0%.

--Business investment rose 1.5% q/q in Q2 (the median forecast as +0.9%), also the third straight rise, with the increase accelerated from +0.4% in Q1.

--Net exports of goods and services -- exports minus imports -- made a negative 0.3 percentage point contribution to total domestic output (the median forecast was -0.4 percentage point). It was the first negative contribution in two quarters after pushing Q1 GDP growth up by 0.4 percentage point.

--Exports fell 0.1% on quarter in Q2 after falling 2.0% in Q1. Imports rose 1.6% after falling 4.3% in the previous quarter.

--Private-sector inventories contributed a negative 0.1 percentage point to Q2 GDP following +0.1 percentage point in Q1.

--Public investment rose 1.0% on quarter following +1.4%. Its contribution to GDP was +0.0 percentage point.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email:
--MNI London Bureau; tel: +44 203-586-2225; email:

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