Tokyo, Nov. 11 (Jiji Press)–Japan’s real gross domestic product in the July-September quarter is projected to have risen 0.1 pct from the previous quarter, for an annualized increase of 0.4 pct, according to estimates released by 10 private think tanks. GDP is expected to have grown for the fourth straight quarter, backed by strong capital investment, while consumer spending likely stayed weak as households were cautious about spending amid high prices. The Cabinet Office is scheduled to release preliminary GDP data for the second quarter of fiscal 2026 on Monday. By category, private consumption is estimated to have fallen 0.2 pct, weighed down by the fading of temporary demand boosts, including stronger automobile sales following the abolition of the environmental performance levy and last-minute purchases of air conditioners ahead of stricter energy-efficiency standards. Unfavorable weather conditions, including typhoons and prolonged rainfall, also pressured leisure-related spending in particular. Housing investment is projected to have fallen 0.5 pct amid sluggish demand caused by high construction costs and rising interest rates. Meanwhilea, capital spending is forecast to have climbed 1.8 pct, supported by demand for labor-saving measures and artificial intelligence-related investment. Exports are projected to have risen 0.4 pct, led by solid shipments of semiconductor-related products. Imports are estimated to have increased 2.9 pct, partly due to progress in securing alternative sources of crude oil. Yoshiki Shinke, senior executive economist at Daiichi Life Research Institute Co., said that although weakness in the household sector remains a concern, the corporate sector has stayed resilient and the economy remains on a moderate recovery path. END [Copyright The Jiji Press, Ltd.]
