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.
"If worries about such negative growth deepen , the Bank of Japan could consider lowering interest rates further into negative territory."Capital spending rose just 0.2per cent from the previous quarter, much lower than a preliminary 1.5per cent rise and the median forecast for a 0.7per cent increase.
Private consumption, which accounts for some 60per cent of gross domestic product, advanced 0.6per cent 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.
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