Japan's economy contracted less than initially estimated in the first quarter, with inventories contributing slightly more to growth than initially estimated, according to Jinshi. Japan's first quarter GDP private consumption remained unchanged at -0.7% quarter-on-quarter, marking the fourth quarter of decline, while corporate spending data was revised down to -0.4% from an initial decline of 0.7%.
Inventories contributed 0.3 percentage points to growth, while net exports were adjusted to reflect a slight drag on the economy. The report confirmed that household and business spending remains weak, a concern for the government and the Bank of Japan.
Japanese authorities are looking for signs that demand can withstand persistent inflation. Economists expect the central bank to keep its benchmark policy rate unchanged at a two-day meeting that ends on Friday, with many expecting a rate hike in October.
