TOKYO - Japan’s economy grew at a slower pace than initially estimated in the second quarter as the U.S.-China trade war prompted a downward revision of business spending, intensifying calls for the central bank to deepen stimulus this month.
The annualized growth rate translates into a quarter-on-quarter expansion of 0.3% from January-March, compared with a preliminary reading for a 0.4% gain. The capex downgrade was due to government statisticians including a demand-side survey of capex in the revised GDP data, which was not in the preliminary figures and showed weakness in the sector.
Private consumption, which accounts for some 60% of gross domestic product, advanced 0.6% from the previous three months, matching the preliminary reading. The outlook index, indicating the level of confidence in future conditions, slipped to the lowest level since March 2014, the month before Japan’s last sales tax hike in April 2014.
Less manufacturing=good for environment. May many more economies have reduction in manufacturing sector.