The Japanese Q1 GDP data is here ... this was the 'final' data after we got the preliminary earlier this month
And ... wow .... we have seen a huge upward revision to GDP
How huge?
Check it out!
- Q1 GDP (sa) +1.0% q/q (expected +0.7% q/q, preliminary was +0.6%)
- Q1 GDP annualized (sa) +3.9% (expected +2.8%, preliminary was +2.4%)
Solid growth in capital expenditure ... capital spending up 2.7% from the prior quarter ... the preliminary only had it at +0.4% and well above the +2.1% that was the consensus expectation
The pick-up in capex will be very welcome at the BOJ and in the administration
it should be a yen positive as it will make further BOJ easing, at the margin, less likely
Note, though, its not all good news, there are some points to be wary of at the least
- The contribution from inventory building was revised higher
- From 0.5% to 0.6%. This may indicate demand isn't as strong as it was, but on the other hand may reflect business tocking up ahead of expectations of selling more. its impposible to know based on a single number print, but tis something that may be note of caution
- The other data release today (current account) showed a drop in surplus, but its still strong
Meanwhile, USD/JPY is just a few points lower:
