TOKYO: Japan's economy expanded in April-June at a slightly slower pace than initially reported, largely due to downward revisions in corporate and personal spending, government data showed on Monday.
Japan's GDP expanded by an annualised 2.9 per cent in the second quarter from the previous three months, the Cabinet Office's revised data showed, versus economists' median forecast for a 3.2 per cent growth and a 3.1 per cent rise in the preliminary estimate.
The revised figure translates into a quarter-on-quarter expansion of 0.7 per cent in price-adjusted terms, compared with a 0.8 per cent rise issued last month.
Analysts expect the Japanese economy will continue to improve gradually supported by positive trends in wages and personal and corporate spending, while risks remain from external factors such as a potential slowdown in the U.S. and Chinese economy.
The Bank of Japan in July raised its key interest rate to 0.25 per cent from 0-0.1 per cent, and markets are keen to gauge the timing of its next move based on consumption and other data.
None of the economists polled by Reuters last month predicted a rate hike at the next policy-setting meetings on Sept. 19-20, while a majority anticipated a tightening by year's end.
The capital expenditure component of GDP, a barometer of private demand-led strength, rose 0.8 per cent in the second quarter, revised down from a 0.9 per cent uptick in the initial estimate. Economists had estimated a 1.0 per cent rise.
Private consumption, which accounts for more than half of the Japanese economy, increased 0.9 per cent, versus the preliminary reading of 1.0 per cent growth.
External demand, or exports minus imports, knocked 0.1 percentage point off growth, unchanged from the preliminary reading. On the other hand, domestic demand contributed 0.8 percentage point.