Q2 GDP 2.9 annualised vs initial 3.1
Capex, consumption revised down slightly
Bumpier outlook for consumption could cloud BOJ ratehike plans
Most economist still expect further rate hike by yearend
TOKYO, Sept 9 Reuters Japan39;s economy grew at a slightly slower pace than initially reported in the second quarter, hurt by downward revisions in corporate and household spending that point to a bumpier second half for consumption and the central bank39;s ratehike plans.
The Bank of Japan is keen to see consistent improvement in domestic demand as it focuses on exiting its decadelong monetary stimulus programme and raising interest rates further in coming months.
The nation39;s gross domestic product expanded by an annualised 2.9 in the AprilJune quarter from the previous three months, the Cabinet Office39;s revised data showed on Monday, versus economists39; median forecast for 3.2 growth and a 3.1 rise in the preliminary estimate.
The revised figure for the world39;s fourthbiggest economy translates into a quarteronquarter expansion of 0.7 in priceadjusted terms, compared with a 0.8 rise issued last month.
The economy as a whole has been stagnant since the second half of 2023 although it had finally rebounded in AprilJune, said Kengo Tanahashi, economist at Nomura Securities.
The capital expenditure component of GDP, a barometer of private demandled strength, rose 0.8 in the second quarter, revised down from a 0.9 uptick in the initial estimate. Economists had…