Japan cuts GDP growth for third quarter

AFP, TOKYO: Japan’s third-quarter GDP was weaker than thought with a 0.3 per cent expansion, revised data showed yesterday, as slack corporate spending held back the world’s number three economy.
The latest figures were lower than an initial estimate of 0.5 per cent growth in the July-September period, with exports also under pressure.
The weak reading translates into annualised growth of 1.3 per cent, far below the median market forecast of an annualised 2.3 per cent expansion. But the government did offer a glimmer of hope, slightly revising up growth figures for the first and second quarter, as spending ticked up.
And while Japan’s recovery has been unsteady, the economy is “growing bit by bit”, said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
“With slack consumption at the moment and slow capital spending, the economy may not look like it’s expanding,” he added.
“But it will carry on growing steadily even though the number may not be that strong.” 
Japan’s economy contracted in the last three months of 2015, before bouncing back this year although the recovery has been wobbly.  That is putting Japanese officials under increasing pressure to deliver as more and more economists write off Prime Minister Shinzo Abe’s bid to cement a lasting recovery, dubbed Abenomics.
Separate figures last month showed that Japan’s factory output ticked up in October, expanding for the third month in a row, but spending among Japanese households was still struggling.
Meanwhile, inflation was also disappointing, with core consumer prices—which exclude volatile fresh food costs—falling 0.4 per cent in October to extend their longest run of declines for five years, and putting the Bank of Japan’s 2.0 per cent inflation target well out of reach.
Next week, Japan’s central bank will release its closely-watched Tankan business sentiment survey.
‘Trump effect’
Abe came to office in late 2012 and launched a growth plan—a mix of massive monetary easing, government spending and red-tape slashing.
The plan sharply weakened the yen—fattening corporate profits—and set off a stock market rally that spurred hopes for a once-soaring economy caught in a deflationary spiral of falling prices and lacklustre growth.
Promises to cut through red tape have been slower, and his plan to buoy Japan’s once-booming economy have looked increasingly uncertain.
The yen, often bought as a safe haven in times of uncertainty, had been on the upswing since the start of the year, and got a big bump after Britain’s shock vote to exit the European Union.

Japan cuts GDP growth for third quarter

AFP, TOKYO: Japans third-quarter GDP was weaker than thought with a 0.3 per cent expansion, revised data showed yesterday, as slack corporate spending held back the worlds number three economy. The latest figures were lower than an initial estimate of 0.5 per cent growth in the July-September period, with exports also under pressure. The weak reading translates into annualised growth of 1.3 per cent, far below the median market forecast of an annualised 2.3 per cent expansion. But the government did offer a glimmer of hope, slightly revising up growth figures for the first and second quarter, as spending ticked up. And while Japans recovery has been unsteady, the economy is growing bit by bit, said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo. With slack consumption at the moment and slow capital spending, the economy may not look like its expanding, he added. But it will carry on growing steadily even though the number may not be that strong. Japans economy contracted in the last three months of 2015, before bouncing back this year although the recovery has been wobbly. That is putting Japanese officials under increasing pressure to deliver as more and more economists write off Prime Minister Shinzo Abes bid to cement a lasting recovery, dubbed Abenomics. Separate figures last month showed that Japans factory output ticked up in October, expanding for the third month in a row, but spending among Japanese households was still struggling. Meanwhile, inflation was also disappointing, with core consumer priceswhich exclude volatile fresh food costsfalling 0.4 per cent in October to extend their longest run of declines for five years, and putting the Bank of Japans 2.0 per cent inflation target well out of reach. Next week, Japans central bank will release its closely-watched Tankan business sentiment survey. Trump effect Abe came to office in late 2012 and launched a growth plana mix of massive monetary easing, government spending and red-tape slashing. The plan sharply weakened the yenfattening corporate profitsand set off a stock market rally that spurred hopes for a once-soaring economy caught in a deflationary spiral of falling prices and lacklustre growth. Promises to cut through red tape have been slower, and his plan to buoy Japans once-booming economy have looked increasingly uncertain. The yen, often bought as a safe haven in times of uncertainty, had been on the upswing since the start of the year, and got a big bump after Britains shock vote to exit the European Union.