Japan Q3 GDP seen contracting at slower pace on capex: Reuters poll
Reuters
Published Dec 04, 2023 11:26PM ET
TOKYO (Reuters) - Japan's economy likely shrank slightly less than initially estimated in July-September, reflecting an expected upward revision in private sector capital investment, a Reuters poll showed on Tuesday.
Revised real gross domestic product (GDP) data on Friday is expected to show Asia's second-largest economy contracted at an annualised rate of 2.0% in the third quarter, roughly in line with a preliminary reading of 2.1%, according to the poll of 16 economists.
An upward revision in a capital expenditure forecast to a 0.5% decrease from the provisional estimate for a 0.6% fall, would contribute to the modest change, analysts said.
Ministry of Finance data last week showed Japanese firms increased capital expenditure in the third quarter from the same period the previous year, but it was smaller than an increase in the second quarter.
Analysts said uncertainties over the domestic and global outlook would remain.
"In the October-December period and beyond, high prices will continue to weigh on personal consumption, and the economic downturn in Europe and the U.S. will be a headwind for exports of goods," Saisuke Sakai, senior economist at Mizuho Research and Technologies, wrote in a note.
Japan's economy is facing headwinds, with high inflation taking a toll on household spending and slowing global demand, including in China, adding pressure on manufacturers.
The government will release the revised GDP data on Friday, Dec. 8 at 8:50 a.m. JST (Dec. 7 at 2350 GMT).
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.