Japan’s economy contracts in Q3

Japan’s economy unexpectedly shrank at an annualised rate of 1.2% in Q3 from the previous quarter. Data showed that it marked the first contraction in a year due to a slowdown in consumption and hefty import gains denting net exports. The gross domestic product figure compared with economists’ median estimate for a 1.1% expansion and a revised 4.6% rise in Q2. It translated into a quarterly decline of 0.3% versus a forecast 0.3% growth. The government is stepping up support for households to try to ease the effects of cost-push inflation, with JPY29tr in extra spending in the budget. Private consumption grew 0.3%, against a consensus estimate for 0.2% growth and slowing sharply from the previous period’s 1.2% gain.