Japan's Economy Grows 1.5% in Q3

Japan’s economy expanded 1.5% between July and September, returning to growth after three consecutive quarters of contraction, the Cabinet Office said on November 14th.
TradingEconomics.com, the Cabinet Office 11/17/2011 1:14:20 PM

The 1.5% quarter-on-quarter growth in gross domestic product – equivalent to an annualised rate of 6% – reflects in part the restoration of supply chains disrupted by the huge earthquake and tsunami that hit north-east Japan on March 11.

Net exports contributed 0.4 percentage points to GDP growth, marking the first positive contribution in five quarters. Private consumption jumped 1.0 percent, rising for the first time in four quarters.

Government consumption growth was modest and public investment actually declined 2.8 per cent quarter-on-quarter. However, state spending on reconstruction of tsunami-devastated communities along hundreds of kilometres of the north-east coast is expected to accelerate in coming months.

Corporate capital spending rose 1.1 percent, matching expectations - while service spending added 0.6 percent.