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