Top pleasure shopping streets with multi colored neon signs in Tokyo, Japan.
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Japan’s economy grew much more than expected in April-June to mark the third straight quarter of distention, as robust private consumption and business investment offset the hit to exports from cooling global demand.
The data proffers some relief for the Bank of Japan, which is under pressure to follow other central banks and ramp up stimulus to foremost off heightening global risks.
Gross domestic product grew at an annualized 1.8% in the second quarter, the Cabinet Firm’s preliminary data showed on Friday, far exceeding a median market forecast for a 0.4% increase. It followed a revised 2.8% progress in January-March.
Private consumption, which accounts for about 60% of the economy, rose 0.6% from the previous habitation to mark the third straight quarter of increase, thanks to brisk demand for cars and air conditioners, a government official related reporters.
Capital expenditure increased 1.5%, accelerating from a 0.4% rise in January-March and beating a median trade in forecast for a 0.7% gain, as companies invested in streamlining operations in the face of labor shortages.
Domestic demand augmented 0.7 percentage point to GDP growth, more than offsetting the 0.3 point negative contribution from exterior demand, the data showed.
On a quarter-on-quarter basis, GDP expanded 0.4%, compared with a median estimate of a 0.1% pay-off, the data showed.