Japan’s Economy Grows an Unimpressive 5.6% in Q3
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Japan’s strong yen resulted in slightly disappointing gross domestic product growth during the third quarter spanning July to September.
Japan reported GDP rose 5.6 percent for the quarter, 400 basis points lower than the country’s initial reading of 6 percent last month. Although growth was actually lower than initially forecast by the country, it topped the Street’s consensus of 5.2 percent growth.
Growth was 1.4 percent from the second quarter, but analysts suggest the data point is not promising as capital spending -- a key indicator of future growth -- fell 400 basis points quarter over quarter. Personal consumption also was 300 basis points weaker than the country initially forecast. Inventories rose 300 basis points, something analysts cited by the WSJ called “worrisome."
Economists are cutting growth estimates for the fourth quarter as they begin to look ahead following relatively weak results. The WSJ also reported, a survey of 41 economists now indicates GDP growth of 0.67 percent for the fourth quarter, well below the 2.09 percent survey taken before the third quarter results were released.
On a brighter note, the additional budget bill of ¥12.1 passed in November is said to add roughly 1.7 percent in real GDP.
Japan reported GDP rose 5.6 percent for the quarter, 400 basis points lower than the country’s initial reading of 6 percent last month. Although growth was actually lower than initially forecast by the country, it topped the Street’s consensus of 5.2 percent growth.
Growth was 1.4 percent from the second quarter, but analysts suggest the data point is not promising as capital spending -- a key indicator of future growth -- fell 400 basis points quarter over quarter. Personal consumption also was 300 basis points weaker than the country initially forecast. Inventories rose 300 basis points, something analysts cited by the WSJ called “worrisome."
Economists are cutting growth estimates for the fourth quarter as they begin to look ahead following relatively weak results. The WSJ also reported, a survey of 41 economists now indicates GDP growth of 0.67 percent for the fourth quarter, well below the 2.09 percent survey taken before the third quarter results were released.
On a brighter note, the additional budget bill of ¥12.1 passed in November is said to add roughly 1.7 percent in real GDP.
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