Japan: Economy contracts faster than first estimated on lower capital spending
September 9, 2011
In the second quarter, the economy contracted more than initially reported in the first estimate. According to the second preliminary estimate released by the Cabinet Office on 9 September, GDP dropped 2.1% at a seasonally adjusted annualised rate over the previous quarter, which was significantly worse than the 1.3% contraction estimated earlier, but broadly in line with market expectations of a 2.2% decline. A downward revision to private non-resident investment was the most important factor behind the adjustment to the preliminary estimates, mitigated by an upward revision to public investment. Compared to the same period last year, the economy contracted 1.1%, which was virtually unchanged from the previous quarter's 1.0% contraction.