Saturday, 16 October, 2021

Japan seen upgrading Q2 GDP on stronger business spending

Japan seen upgrading Q2 GDP on stronger business spending

TOKYO: Japan’s economy likely grew more than initially reported in the second quarter thanks to stronger business spending, a Reuters poll showed, though a resurgence of coronavirus infections is seen weighing on growth going forward.

Separate data due next week will likely show household spending rebounded in July from a year earlier, in a sign consumer sentiment recovered somewhat before the highly infectious Delta variant spread rapidly in Japan, report agencies.

Revised gross domestic product (GDP) data is expected to show Japan’s economy grew an annualised 1.6per cent in April-June, more than a preliminary reading of 1.3per cent growth, the poll of 19 economists showed.

The stronger figure was in part due to an expected 2.0per cent rise in capital spending, a larger increase than a preliminary 1.7per cent gain, analysts projected. The world’s third-largest economy contracted 1.0per cent in the first quarter.

“The view that Japan’s economy remained stagnant in April-June is unchanged,” said Saisuke Sakai, senior economist at Mizuho Research Institute.