Japan Barely Escapes Recession In Q4 - InvestingChannel

Japan Barely Escapes Recession In Q4

Japan’s gross domestic product was flat in the fourth quarter of 2012 compared to the previous three months, the Cabinet Office said in Friday’s revised report – breaking barely out of a technical recession following three straight quarters in the red.

The headline figure missed forecasts for an increase of 0.1 percent after last month’s preliminary reading suggested a 0.1 percent contraction. GDP also was down 0.1 percent in Q3.

On a yearly basis, GDP was up 0.2 percent – in line with expectations and up from the initial reading for a 0.4 percent decline. GDP contracted 3.8 percent on year in the third quarter.

Nominal GDP came in at -0.3 percent on quarter – also matching forecasts and up from the preliminary reading -0.4 percent. It dropped 1.1 percent in the third quarter.

The GDP deflator was revised down to -0.7 percent on year, versus forecasts for -0.6, which would have been unchanged from the preliminary read. It was down 0.8 percent in Q3.

Capital spending was upwardly revised upward to a 1.5 percent contraction on quarter after last month’s reading called for a 2.6 percent decline.

Private consumption was revised up to 0.5 percent on quarter versus the initial estimate of a 0.4 percent increase.

Also on Friday:

• Japan saw a current account deficit of 364.8 billion yen in January, the Ministry of Finance said – topping forecasts for a shortfall of 611.5 billion yen following the 264.1 billion yen deficit in December.

The adjusted current account was a surplus of 364.6 billion yen – also topping expectations for a surplus of 112.2 billion yen after showing a surplus of 114.7 billion yen in the previous month.

The trade deficit came in 1,479.3 billion yen – but that also beat forecasts for a shortfall of 1,512.3 billion yen following the 567.6 billion yen deficit a month earlier.

Exports were at 4.646 trillion yen, up 6.7 percent on year after coming in at 5.067 trillion yen in December. Imports came in at 6.125 trillion yen, rising an annual 6.6 percent after showing 5.635 trillion yen in the previous month.

The financial account was a surplus of 735.4 billion yen in January, the data showed, while the capital account reflected a deficit of 127.9 billion yen.

• Overall bank lending in Japan was up 1.9 percent on year in February, the Bank of Japan said, standing at 402.452 trillion yen. That follows the 1.6 percent increase in January and the 1.4 percent gain in December.

Including trusts, bank lending added an annual 1.5 percent to 464.223 trillion yen after collecting 1.3 percent in January and 1.1 percent in December.

Lending from foreign banks dropped 6.8 percent on year to 2.062 trillion yen following the revised 8.2 percent contraction in January and the 11.3 percent drop in December.

• Upon the release of the data, the Japanese yen halted its recent downtrend against its major rivals, trading near 142.59 against the pound, 94.90 against the U.S. dollar, 100.92 against the Swiss franc and 124.67 against the euro.

by RTT Staff Writer

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