Thursday, June 9, 2011

Japan Q1 revised GDP falls 0.9% q-o-q, capex weak

TOKYO: Japan's gross domestic product (GDP) shrank 0.9 percent in January-March from the previous quarter, revised Cabinet Office data showed on Thursday, unchanged from the preliminary figure despite a bigger drop in corporate capital spending than initially estimated in the wake of the March earthquake.

The figure compared with economists' median forecast for a revised 0.8 percent contraction.

It translated into an annualised contraction of 3.5 percent in real, price-adjusted terms, against an initial reading of 3.7 percent of contraction and economists' forecast of a 3.0 percent decline.

Capital spending fell a revised 1.3 percent, larger than a preliminary reading of a 0.9 percent drop and economists' forecast of a 0.8 percent decline.

Analysts polled by Reuters expect Japan's economy will resume growing in July-September after an expected three consecutive quarters of contraction. ' Reuters

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