Japan's GDP Q1, QoQ: -0.6% vs -0.5% expected, yen stable
Japan's Gross Domestic Product for the first quarter (Q1, QoQ) arrived -0.6% vs -0.5% expected, the yen was stable on the release.
Key notes
- Japan Jan-March revised real GDP -0.6% QoQ (prelim -0.9%, Reuters poll -0.5%).
- Japan Jan-March revised real GDP annualised -2.2% (prelim -3.4%, poll -2.1%).
- Japan Jan-March revised capex +1.9% QoQ (prelim -0.5%, poll +1.4%).
- Japan Jan-March revised private consumption -0.8% QoQ (prelim -0.7%).
- Japan Jan-March revised net external demand contribution to GDP -0.2 pct point (prelim -0.2 pct point).
- Japan Jan-March revised domestic demand contribution -0.4 pct point (prelim -0.7 pct point).
- Japan GDP SA (Q/Q) Q1 F -0.6% (est -0.5%; prev -0.9%).
Japan's economy shrank an annualised 2.2% in January-March, less than the initial estimate of a 3.4% contraction, revised data from the Cabinet Office showed Monday.
The revised figure for gross domestic product compared with economists' median forecast for a 2.1% contraction in a Reuters poll.
On a quarter-on-quarter basis GDP shrank 0.6% compared with a 0.9% contraction in the initial reading and a median forecast of a 0.5% fall,
– Reuters news reported.
Description the Gross Domestic Product
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.
USD/JPY update
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
