Japan Q2 GDP growth seen recovering on consumer spending, capex: Reuters poll

According to the latest Reuters poll of sixteen analysts, the Japanese economy is likely to see an upturn in the second quarters of this year, following a contraction seen the first three months to March.

Key Findings:

“Gross domestic product (GDP) is expected to have expanded at an annualized rate of 1.4 percent in the second quarter, the poll of 16 analysts showed. That would translate to a 0.3 percent expansion in April-June from the previous quarter.

In January-March, the economy shrank at an annualized rate of 0.6 percent, marking the end to eight straight quarters of growth.

Capital spending was seen rising 0.6 percent in the quarter, the poll found, up for a seventh straight quarter and accelerating from 0.3 percent growth in the first quarter.

Private consumption, which accounts for about 60 percent of GDP, likely rose 0.2 percent for the quarter, rebounding from a 0.1 percent fall in the first quarter.

External demand - or exports minus imports - was expected to add 0.1 percentage point to growth, the poll found, the same rate of contribution seen in the first quarter.”