Japanese Economy Avoids Recession in Q3
The GDP in Japan advanced 0.3 percent on quarter in the three months to September of 2015, compared to an initial estimate of a 0.2 percent contraction and beating forecasts for a flat reading. Capital expenditure increased while inventories shrank less than expected, final figures showed.
12/8/2015 12:29:06 AM
Domestic demand edged up 0.1 percent, adding 0.1 percentage point to growth, compared to an initial estimate of a 0.3 percent drop.
Private consumption grew at a slower 0.4 percent (0.5 percent in the preliminary estimate), contributing 0.2 percentage point to the expansion (0.3 percent in the preliminary estimate). Private non-residential investment grew 0.6 percent, adding 0.1 percent to growth (down 1.3 percent and subtracting 0.2 percent to growth in the earlier release) while residential investment increased slightly more than expected (2 percent from 1.9 percent in the preliminary estimate, contributing 0.1 percentage point). Inventories subtracted 0.2 percentage point to growth, lower than an initial estimate of -0.5 percent.
Government spending rose 0.3 percent, adding 0.1 percent to the expansion, in line with earlier figures while public investment contracted 1.5 percent, subtracting 0.1 percent to growth (down 0.3 percent in the preliminary estimate).
External demand contributed 0.1 percentage point to growth, unchanged from the preliminary estimate. Exports grew 2.7 percent while imports shrank 1.7 percent.
On an annualized basis, the economy advanced 1 percent, compared to an initial 0.8 percent contraction and well above market expectations of a 0.1 percent increase.