Indicators
Japan’s Economy Sees Consumption-Led Rebound in Tailwind for BOJ
- Private spending rebounds, suggesting virtuous cycle emerging
- Data create positive backdrop ahead of LDP leadership election
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Japan’s economy rebounded to growth in the second quarter on the back of an increase in private consumption, in a sign that a virtuous cycle long sought by the central bank linking rising incomes to increased spending may be starting to emerge.
Gross domestic product expanded at an annualized pace of 3.1% in the three months through June versus the prior period, the Cabinet Office reported Thursday. The reading, which exceeded the 2.3% consensus estimate, came after the economy contracted by a revised 2.3% in the first quarter.