19 May 2015
Japan Q1 GDP preview – JPM
FXStreet (Barcelona) - The Research Team at JP Morgan, previews the Japanese Q1 2015 GDP data release ahead on Wednesday.
Key Quotes
“Japan’s 1Q GDP report is due Wednesday and we look for a relatively solid 1.5% ar gain. However, the indications are that business inventories accounted for a much of the gain.”
“In particular, consumption growth appears to have stalled during 1Q after a strong increase in 4Q14 despite supports from rising labor income and gains in the stock market.”
“Like most forecasters, we look for household spending to pick up this quarter, and the continued strong recovery in the consumption- related DI in the April Economy Watchers survey was a positive sign in this direction.”
“One potential silver lining in the GDP report would be confirmation of our forecast for a 4% gain in business equipment spending after numerous disappointments on this front.”
“In addition, the report should show that export volume continued to rise at a solid pace.”
Key Quotes
“Japan’s 1Q GDP report is due Wednesday and we look for a relatively solid 1.5% ar gain. However, the indications are that business inventories accounted for a much of the gain.”
“In particular, consumption growth appears to have stalled during 1Q after a strong increase in 4Q14 despite supports from rising labor income and gains in the stock market.”
“Like most forecasters, we look for household spending to pick up this quarter, and the continued strong recovery in the consumption- related DI in the April Economy Watchers survey was a positive sign in this direction.”
“One potential silver lining in the GDP report would be confirmation of our forecast for a 4% gain in business equipment spending after numerous disappointments on this front.”
“In addition, the report should show that export volume continued to rise at a solid pace.”