Japan GDP Growth Stalls in Q2
The Japanese economy unexpectedly showed no growth in the June quarter of 2016, following a 0.5 percent expansion in the first quarter and market expectations of a 0.2 percent growth, preliminary estimates showed. Private consumption and government spending slowed sharply while capital expenditure and exports declined.
8/15/2016 3:18:18 AM
In the second quarter, domestic demand added 0.3 percentage points to growth.
Private consumption went up 0.2 percent, adding 0.1 percentage points to growth. Private residential investment grew by 5.0 percent, adding 0.1 percentage points to growth. Private non-residential investment (capital expenditure) contracted 0.4 percent, substracting 0.1 percent off growth. Inventories made no contribution to growth.
Public investment rose 2.3 percent, adding 0.1 percentage points to growth while government spending rose 0.2 percent and made no contribution to growth.
External demand substracted 0.3 percentage points off GDP: exports fell 1.5 percent, after growing 0.1 percent in the March quarter. Imports shrank 0.1 percent, compared to a 0.5 percent drop in the previous three months.
On an annualized basis, the economy advanced 0.2 percent, slowing markedly from an upwardly revised 2.0 percent expansion in the three months to March and below market estimates of a 0.7 percent growth.