According to a recent Reuters poll, the Japanese economy is expected to have grown for the fourth consecutive quarter in Q3 2019. Higher consumer spending ahead of the sales tax hike which was implemented in October was one of the main drivers behind the GDP growth.

Japan’s economy is estimated to have grown by 0.8% YoY in the third quarter of this year, lower than the 1.3% growth seen in the previous quarter. QoQ growth is seen at +0.2% in Q3 when compared to +0.3% QoQ growth seen in Q2 2019.

Japan’s export-oriented economy continues to be impacted by US-China trade tensions, which have kept exports and factory output weak for considerable time. External demand is anticipated to have reduced 0.1% growth from Q3’s GDP, slightly better than the -0.3% change in GDP growth seen in Q2.

According to the most recently released data, confidence among Japanese consumers registered an uptick for the first time in nearly two years during October. However, the impact of the sales tax hike from 8% to 10% could possibly weigh on the economy in the coming months.