Japan preliminary Q2 GDP +0.3% q/q (expected +0.1%)

Japan’s Q2 GDP beat expectations, with stronger business spending and net exports offsetting a drag from inventories.

Japan Q2 GDP (Preliminary)

• GDP SA (Q/Q): 0.3% (est 0.1%; prev 0.0%)

• GDP Annualised SA (Q/Q): 1.0% (est 0.4%; prev –0.2%)

• GDP Nominal SA (Q/Q): 1.3% (est 1.4%; prev 0.9%)

• GDP Deflator (Y/Y): 3.0% (est 3.2%; prev 3.3%)

• Private Consumption (Q/Q): 0.2% (est 0.1%; prev 0.1%)

• Business Spending (Q/Q): 1.3% (est 0.7%; prev 1.1%)

• Inventory Contribution to GDP: –0.3% (est –0.2%; prev 0.6%)

• Net Exports Contribution to GDP: 0.3% (est 0.1%; prev –0.8%)

This is the fifth consecutive quarter of GDP increase

• both consumption and capex have risen for those 5 straight quarters.

Both JGB futures and USD/JPY are dipping a little after the data.