Japan GDP Shrinks Less than Expected
The Japanese economy contracted 0.3 percent on quarter in the three months to December of 2015, compared to an initial estimate of a 0.4 percent contraction. Business spending grew faster than expected while private consumption fell more than anticipated, final figures showed.
3/8/2016 12:17:17 AM
Domestic demand declined 0.4 percent, lower than a preliminary reading of a 0.5 percent contraction and subtracted 0.4 percentage points off growth.
Private consumption went down 0.9 percent, compared to an initial estimate of a 0.8 percent drop and diminishing 0.5 percentage points to growth. Private residential investment fell 1.2 percent, in line with estimates while private non-residential investment grew 1.5, higher than a preliminary of 1.4 percent, adding 0.2 percent to growth. Inventories made no contribution to growth, compared to earlier estimates of a 0.1 percentage point subtraction.
Public investment shrank 3.4 percent, more than anticipated (-2.7 percent) and subtracted 0.2 percent off growth while government spending rose more than expected by 0.6 percent (0.5 percent in the first estimate), adding 0.1 percent.
External demand contributed 0.1 percentage point to growth: exports declined 0.8 percent (-0.9 percent in the preliminary estime) while imports fell at a faster 1.4 percent (in line with earlier figures) .
On an annualized basis, the economy contracted 1.1 percent, compared to a preliminary reading of a 1.4 percent drop.