First quarter 2017 gross domestic product data from Japan
GDP (seasonally adjusted) for Q1, preliminary, 0.5% q/q
- expected 0.5%, prior 0.3%
GDP Annualized (seasonally adjusted) for Q1, preliminary +2.2% y/y BIG BEAT
- expected 1.7%, prior 1.4%, revised up from 1.2%
GDP Nominal (seasonally adjusted), preliminary 0.0% q/q
- expected 0.1%, prior 0.4%
GDP Deflator y/y, preliminary -0.8%
- expected -0.7%, prior 0.0%, revised from -0.1%. (An inflation indicator)
GDP Consumer Spending preliminary 0.4% q/q MISS
- expected is 0.5%, prior was 0.0%
GDP Business Spending preliminary 0.2% q/q BIG BEAT
- expected -0.4%, prior was 1.9%, revised from 2.0%
More:
- External demand contribution to GDP +0.1% (that's a net figure for exports - imports)
- Domestic demand contribution to GDp +0.4%
Today's result shows the Japanese economy expanded for a fifth straight quarter in Q1 2017
- That's the longest run since Q1 2005 to Q2 2006
- Q1 growth was the strongest since Q1 of 2016
- Nominal GDP contracted, first time in 5 quarters
- Exports have their 3rd consecutive quarter of growth
- For the BOJ and their 2% inflation target the deflator at -0.8% y/y is dreadful
There are positives and negatives in this data:
- business spending a positive
- consumer spending a negative (well, a miss on expected, but well ahead of Q4 2016, and Q3)
- nominal GDP a negative