Japan Q3 GDP growth seen slowing sharply as consumption, external demand drag: Reuters poll

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

TOKYO, Nov 6 : Japan's economy is expected to have expanded only marginally between July-September, as recoveries in capital spending were largely offset by slowdowns in private consumption and external demand, a Reuters poll showed on Friday.

• Real gross domestic product (GDP) likely grew an annualised 0.3 per cent in the third quarter, according to the median forecast of 16 economists, slowing from a 1.4 per cent expansion in April-June but remaining on track for a fourth straight quarterly increase.

• Without annualisation, the July-September growth rate was estimated at 0.1 per cent.

• Economic growth will be among factors considered by the Bank of Japan in deciding whether to raise interest rates further. Many analysts expect the next BOJ rate hike as soon as next month.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

• Capital expenditure was seen growing 1.5 per cent, rebounding from the previous quarter's 0.9 per cent decline. In contrast, private consumption, which accounts for more than half of Japan's GDP, is expected to have declined 0.2 per cent, the first contraction in seven quarters.

• "Service consumption was firm in July-September ... but durable goods consumption contracted due to policy-related factors, while non-durable goods consumption was weak because of the negative impact of rising inflation," analysts at SMBC Nikko Securities said in a note.

• Net external demand, or exports minus imports, likely subtracted 0.4 per centage points from GDP growth, after adding 0.5 per centage points in the previous quarter. Analysts said external demand likely turned negative as imports rose, reflecting progress in alternative crude oil procurement.

• The government will release the preliminary third-quarter GDP data on November 16 at 8:50 a.m. (2350 GMT on November 15).

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here