Japan trims April-June GDP contraction estimate to 0.3%

[TOKYO] Japan on Tuesday said its economy contracted 0.3 per cent during the April-June quarter, shrinking less than its original estimate and beating market expectations for a bigger decrease.

The latest revised figure, issued by the Cabinet Office, was slightly better than the 0.4 per cent contraction originally announced for the quarter, and beating the market forecast for a 0.5 per cent contraction.

The contraction in private consumption was revised to 0.7 per cent from an earlier estimate of a 0.8 per cent fall, helping to ease the overall economic shrinkage estimate, the data showed.

But a closer examination of the figures also revealed concerns, analysts said.

"The details were hardly reassuring," said Marcel Thieliant, Japan economist at Capital Economics.

"The upward revision was mostly due to a larger contribution from stock building," he said.

Recent data on exports and industrial production suggest that a rapid recovery this quarter is unlikely, he added.

AFP