Japan Confirms GDP Contraction, Backing Caution From BOJ, Ishiba

Japan Confirms GDP Contraction, Backing Caution From BOJ, Ishiba

Inventories contributed 0.6 percentage point to growth, double the preliminary estimate, while personal consumption managed to eke out growth of 0.1%, versus a prior flat reading. The inventory gain is an indication of greater output, but also points to unsold goods and components, a potential sign of weak demand. Business spending gained 1.1%, a little weaker than first forecasts, while net exports, the main factor pushing the figures into the red, while net exports posted a drag of 0.8 percentage point.

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