Japan Growth Slowed Down in July-September

Japan’s economic growth may have slowed in July-September as consumer spending and exports moderated, but growth will quickly bounce back as shoppers spend up before a sales tax hike next year, a Reuters survey found.

Capital expenditure was also expected to have slowed in the July-September period, the survey found. This cooling, however, could be temporary as service firms plan to ramp up investment to meet improving domestic demand.

A tighter labor market and signs of rising wages should also support consumer spending in coming quarters, which bodes well for Prime Minister Shinzo Abe’s push to foster self-sustaining growth and end 15 years of mild deflation.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza