Japan GDP Upgrade

Japan's Q2 economic growth revised upward to 1.4% on stronger capital expenditure.

Japan's economy grew faster than initially estimated in Q2, according to revised data. The economy expanded an annualised 1.4% in Q1, compared to the initially estimated 1.1%. This growth was driven by capital expenditures which were less weak than initially predicted. Without annualisation, GDP grew 0.4%, matching the median forecast and above the preliminary reading of a 0.3% rise. Businesses' capital expenditure fell 0.9% in the second quarter, compared with economists' forecast for a 08% fall. Private consumption, which accounts for over half of Japan's economy, remained flat. The Bank of Japan raised its policy rate to a 31-year high of 1% in June, but remains under pressure to raise borrowing costs due to price pressures from the U.S.-Iran war and the yen's downward trend.

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