The second estimate of Japanese first quarter GDP came in stronger than expected, revised higher from 0.60% in the first reading to 1.00% in the latest release. The number was helped along broadly by the rise in business spending which rose by 2.70% over the period. With companies recording higher profits and increasing cash flow, capital expenditure investment has ramped higher over time. Annualized GDP expanded at a 3.90% pace versus the 2.40% growth recorded during the initial estimates. Much of the gains are a reflection of the lift from a weakened Yen which has boosted export competitiveness. This marks the fastest growth in the region in years as policymakers explore ways to increase consumer spending to spur a greater restoration of the Japanese economy after climbing back from two decades of deflation. USDJPY has retreated from the highest levels seen since 2002 following the surge in the pair after Friday’s payroll data.
Japanese Growth Revised Higher
Daily Analysis - 08/06/2015