7 September 2001, 13:02  Japan Q2 GDP down 0.8 pct vs rise 0.1 pct in Q1; down 3.2 pct annualised

TOKYO (AFX-ASIA) - Second quarter to June GDP fell 0.8 pct from the March quarter, when the quarter-on-quarter rise was 0.1 pct, the Cabinet Office said.
June quarter GDP fell an annualised 3.2 pct.
The second quarter GDP deflator was down 1.1 year-on-year.
The Cabinet Office provided the following component breakdown of percentage point contributions to the June quarter GDP figure, (compared with the previous quarter):
Domestic demand - minus 0.7 pct pts (plus 0.3)
Private demand - minus 0.5 pct pts (0.0)
Private consumption - plus 0.3 pct pts (plus 0.3)
Residential investment - minus 0.3 pct pts (minus 0.2)
Non-residential investment - minus 0.5 pct pts (minus 0.2)
Private sector inventory - 0.0 pct pts (0.0)
Public sector demand - minus 0.2 pct pts (plus 0.4)
Govt consumption - plus 0.1 pct pts (0.0)
Public investment - minus 0.3 pct pts (plus 0.4)
Public inventory - 0.0 pct pts (0.0)
Net exports - minus 0.1 pct pts (minus 0.2)

The private-sector inventory contribution carries positive implications and the public inventory negative, the Cabinet Office said.
Non-residential investment is considered equivalent to private capital expenditure.
Private sector economists saw second quarter GDP coming in at between a fall of 0.4-1.8 pct over the previous quarter.
A government official reportedly told lawmakers this week that the figure would come in at a negative 1.2 pct, although the Cabinet Office later said the official had been refering to market estimates.
To achieve the government's year to March 2002 GDP growth target of 1.7 pct, a growth rate of some 1.4 pct is now needed in the third and fourth quarters.

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