Japan's economy continues to struggle
- Asian Market
- 4 months ago
Japan's quarterly economic growth was revised lower to 0.3% in the second quarter of 2019 from a preliminary estimate of 0.4% and compared to the previous period's 0.5% growth.
There was a sharp downward revision of capital expenditure amid weakness in the global economy and worsening trade protectionism.
In the June quarter, positive contributions came from private demand, while changes in private inventories were neutral, however net exports contributed negatively to the GDP.
Capital spending rose just 0.2% in the second quarter, much lower than a preliminary 1.5% rise and compared to a 0.2% contraction in the previous three-month period.
Private consumption, which accounts for some 60% of GDP, increased 0.6%, the most in two years, after showing no growth in the first quarter.
Also, public investment rose 1.8%, the most since Q2 2017 and faster than a preliminary 1%.
Exports of goods and services were flat while imports jumped 1.7 percent.
On an annualized basis, the economy grew 1.3% in the second quarter, weaker than the preliminary reading of 1.8% and after a revised 2.2% expansion in the previous quarter.
Source: Smart Trend Team