Japan’s economy slowed for the second straight quarter as weaker consumer spending and a decline in export growth outweighed a strengthening in real estate investment.
Gross domestic product rose an annualized 1.9 percent in the July-September period after gaining 3.8 percent the previous quarter, the Cabinet Office reported today in Tokyo. The median of 27 estimates in a Bloomberg News survey was for a 1.7 percent increase. Unadjusted for price changes, the increase was an annual 1.6 percent.
Growth may rebound this quarter and in the first three months of next year as consumers splurge ahead of sales-tax bump in April that will drive down household spending. The biggest increase in winter wage bonuses since 1990, reported yesterday, was a boost for Prime Minster Shinzo Abe’s campaign to sustain the expansion in the world’s third-biggest economy.