Wednesday, December 9, 2009

Japan GDP Revised Heavily Downward

Welcome to the world of macro-aggregated numbers.

Official estimates of Japan’s growth between July and September were revised down heavily today.

Growth on the previous quarter was revised down from 1.2 per cent to 0.3 per cent. At an annualised rate the revision was from 4.8 per cent to 1.3 per cent.

A recovery in business investment reported in the first release proved an illusion. The figure was revised down from a 1.6 per cent rise on the previous quarter to a 2.8 per cent fall, accounting for two-thirds of the total revision.

The second-biggest revision was to private sector inventories, now judged to have contributed 0.1 per cent to quarter-on-quarter growth, rather than 0.4 per cent.

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