Japan’s April-June GDP Growth Revised Up to 1.4 Pct

Tokyo, Sept. 8 (Jiji Press)–Japan’s gross domestic product in April-June grew an annualized 1.4 pct from the previous quarter after price and seasonal adjustments, the Cabinet Office said in a revised report Tuesday. The growth rate was higher than the 1.1 pct increase reported in the government agency’s preliminary estimate released last month, as auto production and sales proved stronger than initially estimated. In nonannualized terms, the nation’s GDP grew a revised 0.4 pct, compared with the preliminary reading of a 0.3 pct rise. Business investment fell 0.9 pct, narrowing its decline from the preliminary 1.2 pct drop, after the Finance Ministry’s latest corporate activity survey data were incorporated into the estimate. Private consumption, a mainstay of domestic demand, edged up 0.01 pct, reversing a preliminary 0.02 pct decline. The stronger-than-expected auto production and sales reflected the abolition of the environmental performance-based tax imposed on vehicle purchases. Government spending was also revised up to a 1.7 pct increase from a 1.6 pct rise. Housing investment, meanwhile, was revised down to a 0.6 pct decline from a 0.5 pct fall, reflecting a decrease in renovation spending. Public investment fell 0.5 pct, compared with a preliminary 0.1 pct decline. On the external front, exports were revised to a 0.4 pct growth from a 0.5 pct increase, while imports, which are subtracted from GDP growth, fell 1.7 pct, compared with a preliminary 1.5 pct decline. Nominal GDP, which reflects price changes and more closely tracks the economy as felt by households, rose 1.3 pct from the previous quarter, or 5.5 pct on an annualized basis, both revised up from preliminary increases of 1.2 pct and 4.8 pct, respectively. Nominal GDP totaled 689,219.1 billion yen on an annualized basis. END [Copyright The Jiji Press, Ltd.]