Japan Raises Q4 GDP Growth

(RTTNews) - Japan's economy grew much stronger than initially estimated in the fourth quarter on robust capital expenditure, revised data published by the Cabinet Office revealed Tuesday.

Gross domestic product grew by an annualised 1.3 percent in the fourth quarter, which was revised up from the initial estimate of 0.2 percent.

This followed third quarter's 2.6 percent contraction and a 2.4 percent expansion in the second quarter.

The quarterly GDP growth was revised up to 0.3 percent from 0.1 percent. The economy had shrunk 0.7 percent in the third quarter.

The upward revision in the annual growth largely reflects a 1.3 percent increase in business investment. Private consumption advanced 0.3 percent and government spending moved up 0.4 percent. Net exports provided no contribution to GDP growth.

ING economist Min Joo Kang said the Bank of Japan is set to delay any rate hike to June after standing pat in April as the economy posted stronger-than-estimated growth amid limited gas price risks.

Another official data revealed an unexpected fall in Japan household spending in January. Household consumption logged an annual fall of 1.0 percent in January, the Ministry of Internal Affairs and Communications reported.

Although the pace of decline slowed from the 2.6 percent decline posted in December, the decrease came in contrast to economists' forecast of 2.3 percent growth.

Month-on-month, the decline in household spending deepened to 2.5 percent from 2.2 percent in December.