GDP revisions from Japan

  • GDP up 0.5% q/q, as expected, from 0.4%
  • Nominal GDP +0.6% q/q, as expected, from 0.5%
  • GDP deflator +0.9%, as expected
  • Private consumption unrevised at 0.9%
  • Business spending revised to -0.7% from -1.4% (was expected to be revised to -0.4%)

These numbers were very close to expectations. There are some indications that solid growth will continue in Q2.

Contributions:

  • Consumption +0.4 pp vs +0.3 pp
  • Public investment 0.0 pp (unchanged)
  • Capex -0.1 pp vs -0.2 pp
  • Inventories -0.1 pp vs 0.0 pp

The details are solid with better capex and consumption.

One skew in the GDP numbers was the leap year. An analyst from BTMU says that wasn't removed in seasonal adjustments and would knock down Q1 growth to near 0.2%