Japan GDP Shrinks 1.7% in Q2

Japanese economy contracted 1.7 percent from April to June on a quarter-on-quarter basis after a revised 1.5 percent expansion in the first quarter. As expected, sales tax hike in April took a heavy toll on household spending.
Anna Fedec | anna@tradingeconomics.com 8/13/2014 1:30:08 AM
Private consumption, which accounts for about 60 percent of the economy, declined 5 percent as households reduced spending after an increase in sales tax to 8 percent from 5 percent in April. 

Private residential investment shrank by 10.3 percent while business investment fell only 2.5 percent.

Public demand grew 0.2 percent as decrease in public investment was offset by rise in government consumption.

Exports of goods and services declined 0.2 percent while imports dropped by 5.6 percent.

On an annualised basis the world's third-largest economy shrank 6.8 percent, less than a median market forecast for a 7.1 percent drop and following a 6.1 percent increase in January-March.

Japan GDP Shrinks 1.7% in Q2