Japan Q1 GDP contraction was finalized at -1.0% qoq, revised up from -1.3% qoq. Annualized rate was finalized at -3.9%. Capital expenditure shrank -1.2% qoq, revised up from -1.4% qoq. Government consumption dropped -1.1%, revised up from -1.8% qoq. Private consumption contracted -1.5% qoq, revised down from -1.4% qoq. External demand contracted -0.2% qoq. GDP deflator was finalized at -0.1%.
Economy Minister Yasutoshi Nishimura said after the release that consumption spending is expected to return ahead. “If infections subside, there’ll be pent-up demand from not having been able to go eating out or travelling,” he said.
Also released, labor cash earnings rose 1.6% yoy in April, above expectation of 0.8% yoy. Current account surplus narrowed to JPY 1.55T in April, versus expectation of JPY 1.60T. Bank lending rose 2.9% yoy in May, below expectation of 5.6% yoy.
