Japanese GDP SA (QoQ) Q4 -1.6% (est -1.0%; prev 0.1%; prev 0.4%)
|The Japanese GDP SA (QoQ) for the fourth quarter arrives as -1.6% (est -1.0%; prev 0.1%; prev 0.4%), falling for the first time in five quarters, which is the biggest decline since Q2 2014.
Japanese GDP
- Annualized sa (QoQ) Q4 -6.3% (est -3.8%; prevr 0.5%; prev 1.8%).
- Nominal sa (QoQ) Q4 -1.2% (est -0.6%; prevr 0.5%; prev 0.6%).
- Deflator (YoY) Q4 1.3% (est 1.1%; prev 0.6%).
- Private consumption (QoQ) Q4 -2.9% (est -2.0%; prev 0.5%) – biggest decline since 2014 Q2.
- Business spending (QoQ) Q4 -3.7% (est -1.6%; prevr 0.5%; prev 1.8%).
- The Q4 private consumption decline was led by cars, cosmetics, household appliances and alcohol.
- Q4 private consumptions falls for first time in 5 quarters, biggest decline since 2014 Q2.
- Consumption decline was also caused by a pullback in demand after sales tax hike, warm winter and typhoon.
- Impact on consumption from sales tax hike was smaller than after previous tax hike in 2014.
- Capex fell for first time in 3 quarters dragged down by construction, production machinery.
- Q4 exports fell for second straight quarter led by cars.
- Q4 imports fell for first time in 3 quarters led by cars.
- GDP grew for 8 straight years in 2019.
FX implications
- USD/JPY was relatively steady on the release, testing the 10-day moving average to the downside.
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USD/JPY ignores downbeat preliminary figures of Japan Q4 GDP
Description
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.
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