Analysis from the Japan Center for Economic Research

  • expects GDP to fall by 2.7% q/q in Q3 (July-September quarter)

For the September month alone JCER says the economy contracted for a second consecutive month in annualized, seasonally adjusted terms

JCER cites declines in domestic demand:

  • Household consumption -1.6% m/m in Sep.
  • corporate capital investment -1.3%

And also in the external sector:

  • Exports -6.4%

And further add:

  • slowdown of automobile production caused by a shortage of semiconductor supplies.

Yesterday we received the 'summary' of the latest BOJ meeting in which the Bank was at pains to emphasize there wpouild be no tapering of easy policy ahead:

Unsurprisingly given the economic contraction.