Japan revises Jan.-Mar. GDP higher, but number still negative
Japan revised up first-quarter GDP to reflect higher private consumption than initially reported. However, the updated figure still shows the economy contracting in the three months.
The Cabinet Office says the economy in January to March shrank from the previous quarter at an annualized 0.2 percent. The prior estimate was 0.7 percent. The last time GDP contracted was in the first quarter of 2024.
The latest figures show private consumption rose 0.1 percent, compared with the earlier reading of 0.04 percent. Consumer spending accounts for more than half of Japan's GDP.
Housing investment was also revised up to 1.4 percent.
However, corporate capital investment came in a bit lower than estimates, up 1.1 percent compared to the earlier figure of 1.4 percent.
Japan's economy in the first quarter was not directly affected by additional US import tariffs, because they had not yet taken effect.
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