Japan's Revised Q2 GDP Growth Slightly Lower Than Initially Reported
Japan's economy expanded at a slightly slower pace than initially reported in the April-June quarter, according to revised government data released on Monday. The downward revision was primarily driven by adjustments to corporate and personal spending figures.
The revised data showed that Japan's GDP grew by an annualized 2.9% in the second quarter, compared to the previous three months. This figure was slightly lower than the initial estimate of 3.1% growth and the median forecast of 3.2% from economists.
In quarter-on-quarter terms, the revised data translates to a 0.7% expansion in price-adjusted terms, compared to the 0.8% rise reported earlier.
Despite the slight downward revision, analysts remain optimistic about the gradual improvement of the Japanese economy. Positive trends in wages, personal spending, and corporate spending are expected to continue driving growth. However, external factors such as potential slowdowns in the U.S. and Chinese economies pose potential risks.
The Bank of Japan's recent interest rate hike to 0.25% has raised questions about the timing of its next move. While no economists polled by Reuters anticipate a rate hike at the September policy meeting, a majority expect a tightening by year's end.
The revised data also showed a downward revision to the capital expenditure component of GDP, a key indicator of private demand. This component rose by 0.8% in the second quarter, lower than the initial estimate of 0.9% and the economists' forecast of 1.0%.
Private consumption, which accounts for more than half of the Japanese economy, grew by 0.9%, slightly lower than the initial estimate of 1.0% growth.
External demand, or exports minus imports, had a negative impact on growth, subtracting 0.1 percentage points. This figure remained unchanged from the preliminary reading. Domestic demand, on the other hand, contributed 0.8 percentage points to growth.