Japan Q3 GDP Growth Revised Up to 0.6%


The Japanese economy advanced 0.6 percent quarter-on-quarter in the September quarter of 2017, stronger than the preliminary estimate of a 0.3 percent expansion and following an upwardly revised 0.7 percent growth in the prior quarter. It was the seventh straight quarter of growth, supported by exports and faster increase in business spending.

In the three months to September, net exports added 0.5 percentage points to the growth, private non-residential investment/business spending contributed 0.2 percentage points and government spending gave no contribution to growth. On the other had, household consumption substracted 0.3 percentage points from the growth. Meantime, changes in private inventories made no contribution to growth.
Compared to the second quarter, private consumption declined by 0.5 percent, the first drop since the fourth quarter 2015. The figure was similar to the preliminary estimate, in line with market consensus, and following a 0.9 percent increase in the second quarter.
Government expenditure was flat (compared to a 0.1 percent contraction in the preliminary estimate and following a 0.2 percent rise in the prior quarter). Public investments dropped by 2.4 percent (compared to a 2.5 percent fall in the preliminary estimate and after a 4.6 percent rise in Q2).
Private non-residential investment increased by 1.1 percent (much stronger than the preliminary figures of a 0.2 percent gain, higher than market consensus of a 0.4 percent rise and following a 1.2 percent increse in the preceding quarter). Meanwhile, private residential investment shrank by 1.0 percent (compared to the preliminary estimates of a 0.9 percent decline and following a 1.3 percent growth in the June quarter).
Exports of goods and services expanded by 0.5 percent (the same as in the preliminary figures and after a 0.1 percent drop in Q2; imports decreased by 1.6 percent (unchanged from the preliminary estimates and following a 1.5 percent rise in Q2).
On an annualised basis, the economy grew by 2.5 percent, faster than the preliminary estimate of a 1.4 percent expansion and way above market expectations of a 1.5 percent growth.

Japan Q3 GDP Growth Revised Up to 0.6%


Cabinet Office l Rida Husna | rida@tradingeconomics.com
12/8/2017 4:22:06 PM