More on the Q2 GDP data release from Japan earlier
I posted the data here: Japan Q2 GDP (final): -0.3% q/q (-0.5% expected)
Japan's economy shrank less than expected
- Capital expenditure fell more than originally forecast (-0.9% from the previous quarter, more than a preliminary 0.1 percent drop)
- Gains in inventories, which added 0.3% to growth, more than a preliminary 0.1 percent contribution
- Keeps policymakers under pressure to do more to energise the fragile recovery
Analysts expect any rebound in July-September growth to be feeble
- Factory output unexpectedly fell in July
- China's slowdown dampened prospects for a solid recovery in exports
Reuters conclude with pretty much what I said even before the GDP today:
But a recent batch of soft data has cast doubt on such optimism and the Bank of Japan's argument that a steady recovery will help accelerate inflation to its 2 percent target by around September next year.
(And, what I said earlier:
The preliminary GDP release (a couple of weeks ago) was disappointing for the Japanese administration. Talk of more BOJ stimulus just will not go away (Ryan had something on this just a few hours ago). Not also the reduction in short yen positioning and the factors are settling into place for another pop in yen crosses (but, be aware of the 'Kuroda line' around 125 in USD/JPY))
