JPY: GDP surprised to the upside - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, notes that today we have seen Q1 Japanese GDP, which has somehow surprised to the upside, rising 1.7% q-o-q annualized vs. expectations of 0.3%.

Key Quotes

“Indeed, private consumption was up 0.5% q-o-q even though we saw inflation-adjusted household spending collapse y-o-y in the quarter (-3.1%, 1.2%, and-5.3% from January to March). That makes the report smell like out-of-date sushi, and with business investment also -1.4% q-o-q and Q4 revised down too, I don’t expect this optimistic GDP data to survive subsequent revisions.”