Japan GDP Contracts 0.2% in Q3

The Japanese economy shrank 0.2 percent on quarter in the three months to September of 2015, the same as a downwardly revised 0.2 percent drop in the previous period and worse than market expectations of a 0.1 percent contraction. It was the second straight quarter of contraction as growth in private consumption was not enough to offset a fall in capital expenditure and inventories, preliminary estimates showed.

Private demand dropped 0.5 percent, subtracting 0.3 percentage point from growth after falling 0.2 percent in the previous quarter. Private consumption grew 0.5 percent adding 0.3 percentage point to the expanion. Private non-residential investiment decreased 1.3 percent while residential investment went up 1.9 percent.  Inventories subtracted 0.5 percentage point from growth as companies reduced stocks that had expanded over the previous two quarters.

Government spending edged up 0.3 percent while public investment shrank 0.3 percent bringing the contribution from public demand to 0. External demand contributed 0.1 percentage point to growth as exports rose 2.6 percent and imports went up 1.7 percent.

On an annualized basis, the economy contracted 0.8 percent, compared to a downwardly revised 0.7 percent fall in the second quarter and market expectations of a 0.2 percent drop. 

Japan GDP Contracts 0.2% in Q3

Cabinet Office | Joana Taborda | joana.taborda@tradingeconomics.com
11/16/2015 5:06:56 PM