By Tetsushi Kajimoto
TOKYO (Reuters) – The Japanese economic system possible contracted at a barely slower tempo than initially reported in January-March because of upgrades to capital spending figures, a Reuters ballot confirmed on Friday, though dangers proceed to cloud the outlook.
Economists count on progress to return this quarter, helped by tax cuts and wage hikes, however increased import prices because of a weaker yen are seen squeezing consumption whereas disruptions at some automakers are additionally more likely to weigh.
Cupboard Workplace knowledge out on Monday is predicted to point out the tempo of gross home product (GDP) contraction narrowed to 1.9% annualised within the first quarter, barely higher than a 2.0% contraction first reported.
The revised numbers would translate right into a quarter-on-quarter contraction of 0.5%, unchanged from an preliminary studying.
The revised GDP knowledge is predicted to point out capital expenditure, a barometer of personal demand, fell 0.7% within the first quarter, revised up barely from a 0.8% decline within the preliminary estimate, making it a predominant issue for the upward GDP revision.
The preliminary knowledge confirmed personal consumption, which accounts for greater than half of the Japanese economic system, fell 0.7% within the first quarter, as rising dwelling prices pushed up by the weak yen squeezed family funds.
Exterior demand, or exports minus imports, shaved 0.3 share level off from general GDP figures.
Separate knowledge issued on June 12 by the Financial institution of Japan (BOJ) is predicted to point out the company items worth index, which measures costs of products corporations cost one another, possible rose 2.0% in Might year-on-year and 0.4% month-on-month.
(This story has been refiled to repair a typo within the headline, and to make clear that the information is revised)
