Japanese GDP data for Q3 (this is the 'preliminary' reading)
GDP (seasonally adjusted), q/q: 0.5% Big beat
- expected 0.2%, prior 0.2%
GDP Annualized (seasonally adjusted) y/y: 2.2% Big beat
- expected 0.8%, prior 0.7%
GDP Nominal (seasonally adjusted), q/q: 0.2% beat
- expected -0.1%, prior 0.3%
GDP Deflator y/y: -0.1% Miss
- expected 0.3%, prior 0.7%
GDP Consumer Spending (aka private Consumption) q/q, 0.1% beat
- expected 0.0%, prior +0.2%
GDP Business Spending q/q, 0.0% miss
- expected +0.2%, prior -0.1%
A big beat for GDP, but check out the inflation measure (deflator) ... a notable miss. If you are a central banker you'd be encouraged by the GDP (and the contribution of external demand - exports - is the biggest since the second quarter of 2014), but given the goal is 2% inflation (though the timeframe is quite flexible ... is it out to 50 years yet? (I jest)) that's not encouraging.
Business spending the other notable miss, capex has at least stop falling, but flat on the quarter.
Private consumption comes in at a beat, +0.1% on the quarter against flat expected. not setting the world on fire, but still, a beat.
Check out the yen (hey, someone's gotta) ... doing pretty much nothing in the aftermath of this data. There is demand about for USD/JPY but the offers at 107 puting the lid on ... for now at least.
