Stacked containers are seen at an industrial port in Tokyo in February.
10:18 JST, Nov 15, 2024
TOKYO (Reuters) – Japan’s economy grew at an annual rate of 0.9% in the July-September quarter, government data showed on Friday, slowing from the previous three months due to tepid capital spending.
The slower growth figures highlight Japan’s fragile economic recovery as domestic demand has not yet fully recovered, while a growing risk of a US slowdown and further weakness in the Chinese economy could weigh on future exports.
The increase in gross domestic product compared with an average market expectation of a rise of 0.7%, and followed revised growth of 2.2% in the previous quarter, the data showed.
This outcome translates into a quarterly increase of 0.2%, compared to the 0.2% increase expected by economists in a Reuters poll.
Private consumption, which accounts for more than half of economic output, rose 0.9%, compared with a market estimate of a 0.2% increase.
The increase is up slightly from the revised 0.7% increase in the previous quarter, indicating that rising wages are pushing households to spend more.
Capital spending, a key driver of private demand-driven growth, fell 0.2% in the third quarter, matching a 0.2% decline in the Reuters poll.
Net external demand, or exports minus imports, suppressed growth by 0.4 percentage points, offsetting a negative contribution of 0.1 percentage points in the April-June period.
The Bank of Japan maintained ultra-low interest rates last month and said risks surrounding the U.S. economy were easing somewhat, indicating conditions are becoming conducive to raising interest rates again.
