Japan’s economic growth in the April-June quarter came out lower than the previous preliminary estimates as weak capital spending weighed on its expansion.
The finalized data showed that Japan’s economy grew at an annualized real 4.8 percent in the second quarter of 2023, a sharp downward revision from 6.0% reported earlier in the preliminary estimates and 5.5% expected in a Reuters poll.
The Japan Cabinet Office said on Friday that the decline from preliminary estimates was due to weak capital spending in the quarter. Private consumption, which accounts for more than half of Japan’s total GDP, fell 0.6% in 2Q23, a further downward revision from the 0.5% drop in the previous report last month.
Meanwhile, capital investment fell 1%, compared to a flat growth in the previous report.
Still, Japan’s GDP showed significant growth this quarter when compared to a 3.2% growth in the first quarter of this year.