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

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


  • 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

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 …