CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Japan 8217 s revised Q1 growth beats expectations

Article By: ,  Financial Analyst
June 8, 2015 6:36 PM

Japan's Cabinet Office has revealed that the economy grew 3.9 per cent in the first quarter of the year.

It expanded one per cent in the first three months of 2015 from the previous three, up from an initial estimate of 0.6 per cent, thanks to a jump in business spending. A weakening yen over the past months has been giving a boost to the country's big exporters.

Better-than-expected inventory levels contributed to the increase in capital spending, with some electronics manufacturers building up stockpiled items in anticipation of the release of new smartphones in the fall, the Wall Street Journal reports.

The data has fuelled hopes for a steady recovery for the world's third largest economy.

Abenomics

The revised growth data comes after a preliminary reading of 2.4 per cent. In the initial estimate, business spending was up just 0.4 per cent from the previous quarter. The revised reading was 2.7 per cent higher, compared to forecasts of 2.3 per cent.

However, many analysts expect growth in the second quarter to slow down as consumer spending slows and industrial output wanes.

Marcel Thieliant, economist at Capital Economics, told the BBC: "Core consumer spending fell to the lowest level since last summer in April, and industrial output may well contract this quarter. We therefore expect a sharp slowdown in GDP growth in the second quarter."

Japan's economy has been facing difficulties in recent years including stagnant wages, a decline in business investment, a fall in business spending and a drop in consumer spending due to a sales tax increase from five to eight per cent in April 2014.

But the pickup in the pace of recovery offers encouragement for Prime Minister Shinzo Abe, after facing criticism over his “Abenomics”, which combines aggressive monetary expansion, fiscal stimulus and structural reforms designed to revive the economy and end years of stagnation. 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024