Japan's economy grew more slowly than initially thought in 2nd quarter
A pedestrian walks past a stock market indicator board in Tokyo, Japan, Aug. 2, 2019. EPA-EFE FILE/FRANCK ROBICHON
Tokyo, Sep 9 (efe-epa).- Japan's economy grew at a slower pace than initially estimated in the April-to-June quarter as companies became more cautious about making fixed investments amid global trade uncertainty, government data showed on Monday, according to EFE/Dow Jones.
The economy expanded an annualized 1.3 percent in the second quarter, following a 2.2-percent growth in the previous three months, revised gross domestic product figures showed.
That was lower than the annualized 1.8-percent growth in a preliminary estimate from the Cabinet Office last month.
Monday's data showed capital spending rose 0.2 percent from the previous quarter, sharply lower than the initial estimate of a 1.5-percent increase.
Economists say the outlook is getting more cloudy as there is no sign of the trade dispute between Japan's two biggest trading partners – the United States and China – ending anytime soon.
SMBC Nikko Securities economist Yoshimasa Maruyama said he expected the Japanese economy to ?fall into a mild recession in the October-to-December period.
In October, the Japanese economy is facing another big event: an increase in its consumption tax to 10 percent from the current 8 percent.
Maruyama said the Japanese government?? is expected to roll out fiscal stimulus to prevent any serious downturn.
Private consumption, which accounts for more than half of GDP, rose 0.6 percent, unchanged from the initial estimate. EFE-EPA