Japan: Weaker than expected Q2 capex figures - BBH

Research Team at BBH, notes that the Japan surprised today with the weaker than expected Q2 capex figures, which warn of the risk that Q2 GDP is revised lower.

Key Quotes

“Capex was expected to have risen by 5.5% after 4.2% gain in Q1.  Instead, it increased by 3.1%.  Separately, Japan reported that corporate profits fell 10% in Q2, which is the largest decline since 2011.  It was a function of two factors, a 3.5% drop in sales (weaker domestic demand) and the rise of the yen (translation of foreign earnings).”