• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Japan upgrades Q2 GDP on stronger business spending

September 8, 2021 by David Barret Leave a Comment

September 8, 2021

By Tetsushi Kajimoto and Kantaro Komiya

TOKYO (Reuters) -Japan’s economy grew faster than the initially estimated in the April-June quarter, helped by solid capital expenditure, although a resurgence in COVID-19 is undermining service-sector consumption and clouding the outlook.

Revised gross domestic product (GDP) data by the Cabinet Office released on Wednesday showed the economy grew an annualised 1.9% in April-June, beating economists’ median forecast for a 1.6% gain and the initial estimate of a 1.3% expansion.

It followed Prime Minister Yoshihide Suga’s announcement last Friday that he was stepping down, paving the way for the Sept. 29 ruling party leadership race, in which contenders will outline their plans to revive the world’s third-largest economy.

The upward revision was caused by better-than-initially-estimated business spending, as a brisk global economic recovery powered capital expenditure and factory output, which more than offset weak service-sector activity.

Still, Japan’s economic recovery remains fragile due to slow COVID-19 vaccinations and as pandemic restrictions hamper private-sector activity.

“Japan’s recovery is lagging behind other advanced economies. As such, the economy’s fully-fledged recovery needs to wait at least until early next year,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

However, global chip shortages may put a drag on Japanese car production and shipments while signs of China’s economic slowdown emerge as sources of concern.

“The 1.9% April-June growth was not enough to push back the nearly 4% dip in January-March – less than a half of it,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. “On average, ‘stalling’ could be the main description of Japan’s economy during the first half of 2021.”

The second-quarter GDP growth figures translated into a quarter-on-quarter expansion of 0.5% in price-adjusted terms, better than an initial reading of a 0.3% growth and the median estimate for a 0.4% gain.

The capital expenditure component of GDP grew 2.3% in the second quarter from January-March, bigger than the median forecast for 2.0% growth and the preliminary 1.7% gain.

Private consumption, which accounts for more than half of Japan’s GDP, grew 0.9% in April-June from the previous three months, up slightly from a preliminary estimate of a 0.8% gain.

Domestic demand contributed 0.8 percentage points to revised growth figures, while net exports – or exports minus imports – shaved 0.3 percentage point off the second quarter growth.

Separate data on Wednesday showed the economy watchers survey, a gauge of service-sector sentiment fell to a seven-month low in August and at the fastest pace since February 2020.

The government downgraded the watchers’ overall assessment of the economy, saying “there are weaknesses in the recovery due to the effect of COVID-19.”

The data came a day after a weaker-than-expected July household spending reading, which suggested https://ift.tt/3hegbs5 the COVID-19 resurgence could have started hampering consumer activities even earlier in the current quarter.

(Reporting by Tetshshi Kajimoto and Kantaro Komiya; Editing by Sam Holmes)

Source Link Japan upgrades Q2 GDP on stronger business spending

David Barret
David Barret

Related posts:

  1. Exclusive-Allianz under investigation in Germany over investment funds
  2. Turkey says working with Qatar, U.S. on operation of Kabul airport
  3. U.S. Congress stuck between a rock and a hard place on raising debt limit
  4. Soccer-Injury scare for Spurs as Son picks up knock on international duty

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Scientists Perplexed By 407-Million-Year-Old Fossilized Plant That Doesn’t Follow The Fibonacci Sequence
  • This Giant Goldfish Hybrid Weighs As Much As A 10-Year-Old – A Stark Warning About Dumping Pets
  • Scientists Gave Mice Neanderthal And Denisovan Genes. The Results Were Intriguing
  • 2024 Saw Higher Levels Of Carbon Dioxide In The Atmosphere Than Ever Before
  • Halloween Fireballs Will Grace Our Skies As The Taurid Meteor Showers Arrive
  • Newly Discovered Hunting Megastructures Suggest Pre-Bronze Age Societies More Sophisticated Than Previously Thought
  • What Is Spectroscopy And Why Is It So Important To Science?
  • Parkinson’s “Trigger” Seen For The First Time: Scientists Image The Toxic Molecules Inside The Human Brain
  • What Flying Animals Exist That Are Not Birds?
  • DNA Evidence Uncovers Surprising Origins Of Native Americans
  • Single Gene Swap “Transfers A Behavior” Between Two Species For The First Time
  • Interstellar Object 3I/ATLAS Has A Rare “Anti-Tail”, New Observations Confirm
  • Asteroid Apophis: Animation Shows Asteroid’s Nail-Biting Close Approach To Earth In 2029
  • Titan Breaks A Key Chemistry Rule: What That Means For Alien Life
  • Scientists Studied “Chicago Rat Hole” – They Have Bad News, The South Atlantic’s Magnetic Field Weak Spot Is Growing, And Much More This Week
  • Could This Be The Real Reason Humans Survived And Neanderthals Died Out?
  • Newly Discovered Snail Species Named After Studio Ghibli Co-Founder Is A Hairy Beauty
  • 2025 SC79 Is The Second-Fastest Asteroid Ever Found – And Only The Second Within Venus’ Orbit
  • When Red Devil Spiders Arrived On A New Island, Their Genome Dramatically Shrank In Half
  • Is This The World’s Oldest Story? Ancient Human Tale About The Seven Sisters May Be From 100,000 BCE
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version