Gross domestic product expanded an annualised 2.2 percent in the three months to December, the Cabinet Office’s revised data showed, slower than the 2.8 percent growth in the initial estimate and economists’ median forecast.
The revised numbers translate into a quarter-on-quarter expansion of 0.6 percent in price-adjusted terms, compared with a 0.7 percent growth issued on February 17.
The Bank of Japan raised short-term interest rates in January to their highest in 17 years, and growth momentum in the world’s fourth-largest economy will be among key factors determining how fast it continues to tighten policy.
The capital expenditure component of GDP, a barometer of private demand-led strength, rose 0.6 percent in the fourth quarter, revised up from a 0.5 percent expansion in the initial estimate.
Private consumption, which accounts for more than half of economic activity, was unchanged versus the preliminary reading of 0.1 percent uptick.
External demand, or exports minus imports, contributed 0.7 of a percentage point to growth, unchanged from the preliminary reading. Domestic demand shaved 0.2 of a percentage point off.
Separate data from the internal affairs ministry showed household spending rose 0.8 percent in January year-on-year.
On a seasonally adjusted, month-on-month basis, spending dropped 4.5 percent, bigger than an estimated 1.9 percent decline. (Reuters)
