Japan's Q1 GDP contraction narrows on consumption improvement, revised figure shows
TOKYO, June 9 (Reuters) - Japan's economy contracted in the January-March quarter at a slower pace than initially estimated, government data showed on Monday, with consumption figures revised upwards even as uncertainty on U.S. tariffs clouds the outlook.
Gross domestic product shrank an annualised 0.2% in the three months to March, the Cabinet Office's revised data showed, slower than the 0.7% contraction in the initial estimate and economists' median forecast.
The revised quarter-on-quarter number translates as flat in price-adjusted terms, compared with a 0.2% shrinkage issued on May 16.
Monday's revised data reinforced analysts' concern that the economy was losing steam even before U.S. President Donald Trump's so-called reciprocal tariffs in April 2.
Private consumption, which accounts for more than half of the Japanese economy, inched up 0.1%, versus flat in the preliminary reading.
The capital expenditure component of GDP, a barometer of private demand-led strength, rose 1.1% in the first quarter, revised down from 1.4% in the initial estimate. Economists had estimated a 1.3% rise.
External demand, or exports minus imports, knocked 0.8 percentage point off growth, the same as the initial reading. On the other hand, domestic demand contributed 0.8 percentage point.
Japan faces a 24% U.S. tariff starting in July unless it can negotiate a lower rate. It is also scrambling to find ways to persuade Washington to exempt its automakers from 25% tariffs on automobiles, Japan's biggest industry.
Policymakers and analysts are concerned global trade tension unleashed by U.S. tariffs may complicate the Bank of Japan's efforts to normalise monetary policy.
The BOJ is set to hold a two-day policy meeting early next week.
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The Independent
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The Independent
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Reuters
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China's 240-hour transit visa-free policy extended to 55 countries, Xinhua reports
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