“Japan’s GDP growth was really just 1.1%”

“Japan’s GDP growth was really just 1.1%”

Thats the quick take from Fast FT … and its spot on. The figures were awful.

More:

• The Q3 GDP growth figure, which was already a disappointing 1.9 per cent year on year, has been revised downwards very substantially.
• Japan’s economy really grew just 1.1% vs. economists’ forecasts the revision would show growth fell to around 1.6%
• This is the biggest .1% is a significant decline from the much higher growth rates seen earlier in the year (+3.8 % in the three months to June & +4.1% Q to March)
• Q/q GDP growth for the third quarter has been adjusted downwards to 0.3 per cent

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The lower GDP was due to lower private inventory investment and lower capital spending.

On the less negative side, private consumption was +0.8% in Q3 (estimates had it at +0.4%) … this could well be spending ahead of the scheduled sales tax hike coming in April.

While the data is a negative for the Nikkei, it will likely ignite further talk of potential further easing from the BOJ and could support Japanese stocks. Bad news is good for Japan stocks now …