Japan’s GDP Comes in Stronger Than Expected in July-September

According to latest data released by the Cabinet Office, the Japanese economy posted a stronger than expected growth between July and September, boosted by strong domestic demand and business spending. Japan’s GDP for July-September came in at 1.8% YoY, posting a far better growth than the prelim reading of 0.2% annualised growth.

The GDP grew for the fourth straight quarter and beat economists’ forecasts, which was for a reading of +0.7% for this period. While the GDP growth was boosted by robust private consumption and increased capex spending by businesses, analysts have cautioned that Japan’s economy could see weaker growth in the quarters ahead.

One of the key factors for this cautious attitude is the recent sales tax hike that has had a more severe impact on private consumption than anticipated. This could impact domestic demand and production, and possibly impact the GDP as well into 2020.

Following the release of this news, USD/JPY saw a sharp slide lower, but has since steadied itself. The Guppy is trading at around 108.56 at the time of writing.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

Add 3440