Reuters reported that Japan’s economy contracted at an annualised rate of 3.0% in July-September from the previous quarter, government data showed on Monday, posting the first decline in two quarters as resurgent coronavirus infections hurt consumer spending.
”The gross domestic product (GDP) figure translated into a quarterly drop of 0.8%, worse than economists’ median estimate of a 0.2% contraction, the Cabinet Office data showed.
Private consumption, which makes up more than half of the economy, fell 1.1%, versus a 0.5% decline expected by economists, the data showed.”
In other highlights in Japanese data today, it is worth noting the following:
Japan CAPEX falls in July-Sept at fastest rate since April-June 2020.
Japan exports fall for the first time in five quarters.
Japan external demand contribution turns positive for the first time in 3 quarters.
Japan GDP deflator falls for third straight quarter YoY.
Japan govt official: falls in auto, household electronics consumption dragged private consumption in Q3 GDP
Japan govt official: auto, construction, production contributed to fall in CAPEX.
Refile-japan govt official: auto, construction, production machinery contributed to fall in CAPEX (adds dropped word machinery).
Meanwhile, USD/JPY is stagnant around 114.00 and the data has little to no effect on the pair.
About Japan’s GDP
The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time. GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative
Read More: Japan’s GDP translated into a quarterly drop of 0.8%