Several analysts are projecting that Japan’s economy shrank in the July-to-September period. They point to weak spending by consumers and businesses.
An NHK check of 10 research firms found that eight are predicting GDP contracted in the third quarter. The government will release the preliminary figure on November 15.
The firms forecast annualized growth in inflation-adjusted terms ranging from minus 1.2 percent to plus 0.4 percent.
Many of the analysts say growth in private spending was likely weak across the quarter. They say although the long, hot summer pushed up sales of air conditioners and clothing, continued price hikes on food prompted many households to spend more carefully.
Personal consumption accounts for more than half of Japan’s GDP.
Spending by businesses on buildings and equipment was also sluggish. The analysts predict many firms splashed out on software to compensate for labor shortages, but that slowing growth in overseas economies put the brakes on investments in plants and factories.
Strong exports helped boost GDP in the previous quarter. It was a different story for July to September. Some of the analysts predict that a rise in energy-related imports reduced net exports.
Source : NHK