Japan's economy brushed aside a consumer spending dip during the three months to September to post its longest run of uninterrupted growth since an eight-quarter stretch from the second quarter of 1999 until the first quarter of 2001. Although business spending remained in positive territory, albeit at a more sluggish pace, the real surprise came from the dip in consumption which was attributed to bad weather. The latest strength in expansionary figures should embolden the Bank of Japan to maintain its current easy monetary policy framework, given the argument that inflationary pressures will seep into the economy if growth remains on track. Apart from the overnight GDP reading, the Japanese Yen is benefitting from a dip in market risk sentiment after tumbling crude oil prices took their toll on Wall Street. Investors are seeking the relative safety of the currency ahead of the much-anticipated US consumer inflation data due later.
Japan’s GDP Grows for Seventh Straight Quarter
Daily Analysis - 15/11/2017