Sunday, March 8, 2015

Japan Q4 recovery slower than expected

[FOREX News] “Japan Q4 final GDP q/q: 0.4% v 0.5%e; Annualized GDP: 1.5% v 2.2%e; nominal GDP: 1.0% v 1.1%e; confirms emergence from technical recession”

“Japan Feb bank lending (incl trusts): 2.5% v 2.5% prior; bank lending (ex- trusts): 2.6% v 2.6%e”

“Japan Jan current account: ¥61.4b v ¥270be; adj current account: ¥1.06t v ¥1.18te; trade balance: -¥864b v -¥936be”

“Japan Cabinet Office released the final Q4 GDP data that confirmed the economy emerged out of recession, but did so at a slower than expected pace.”

“Private consumption component was up 0.5% - ahead of 0.3% prelim and consensus - but corporate sentiment remained cautious, as investment contracted by 0.1% again vs expected 0.2% pickup.”

“Japan Chief Cabinet Sec Suga spoke after the release, noting economy is still on recovery track. Likewise, BOJ Dep Gov Nakaso remarked the trend toward achieving the 2% inflation target is more important than the pace, although he still expects to reach that goal some time in FY15 unless oil prices continue to pull CPI lower.”

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