Japan’s GDP Forecasters Dead Wrong

Posted by Business Insider

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Second quarter GDP figures in Japan came in well below expectations. The Japanese economy grew 2.6% in Q2 at an annualized rate, below economists’ consensus prediction for 3.6% growth. Business spending fell 0.1% year over year in the second quarter, versus forecasts for a 0.6% rise.

Japan industrial production contracted 3.1% from the previous month in June and fell 4.6% year over year, versus a 3.3% and 4.8% contraction, respectively, in May. Capacity utilization fell 2.3% in June after rising 2.3% the month before.

The Yen hit $96.04 against $96.33 prior to the data print, MarketWatch’s Michael Kitchen says.

The Nikkei is also off -1.26%.

Seasonally-adjusted GDP climbed +0.6% against Q1’s +0.9%.

As we recently explained, Japanese economic data has been doing a lot of missing expectations lately. Industrial production, household spending and July PMI all fell short. 

Plus, July employment fell for the first time in three months.

Abe-nomics — the loose monetary policy ordered by Prime Minister Shinzo Abe to reinflate Japan’s economy — have now been in place about half a year.