Japan's GDP Growth Accelerated in Q2
Japan’s economic growth accelerated to 2-year high in the second quarter, boosted by strong capital spending. Data of the Japan’s Cabinet Office showed the GDP grew an annualized 3.0% in April-June, beating economists' forecast for 2.6%. The preliminary reading was for a 1.9% expansion. On a quarterly basis, Japan’s economy expanded by 0.7% in Q2, as expected, after a decline of 0.2% in the first quarter.
The capital expenditure component of GDP grew 3.1% in April-June from the previous quarter, versus the median forecast for 2.8% rise, and the preliminary 1.3% growth. It was the fastest increase since the start of 2015.
Private consumption, which accounts for roughly 60% of GDP, rose by 0.7% in Q2. Domestic demand contributed 0.9% to revised GDP, while net exports (or exports minus imports) shaved 0.1% off the second quarter growth.