Japan GDP growth seen slowing in Q3, but domestic demand still sold - Reuters poll

The latest Reuters poll of 15 economists on the Japanese growth outlook revealed that most expect the Japanese economic growth to slow in the third quarter of 2019, in the face of typhoons and rainy weather.

However, the economy continues to expand for the fourth straight quarter on strong domestic spending.

Key Findings:

“Gross domestic product (GDP) is expected to have risen an annualized 0.8% in July-September after a downwardly revised 1.3% in the second quarter.

That would translate into 0.2% growth on a quarter-on-quarter basis, compared with a revised 0.3% in the April-June quarter.

Private consumption, which accounts for about 60 percent of GDP, was seen rising 0.6% for the quarter, the same rate of growth as in the second quarter.

Capital spending likely rose 0.9% in the third quarter after a 0.2% gain in April-June.

External demand - or exports minus imports - likely subtracted 0.1 percentage point from growth in the third quarter. In the second quarter, it subtracted 0.3 percentage point from growth.”