Japan Gross Domestic Product Slides 0.4% In Q2

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The Japanese economy moved to contraction in the second quarter, the Cabinet Office said in Monday's preliminary report - falling 0.4 percent on quarter.

The headline figure beat forecasts for a decline of 0.5 percent following the upwardly revised 1.1 percent increase in the first quarter (originally 1.0 percent).

On a yearly basis, GDP slipped 1.6 percent - also beating forecasts for a decline of 1.8 percent following the 3.9 percent gain in the three months prior.

Nominal GDP was flat on quarter, shy of expectations for an increase of 0.1 percent and down from the 2.3 percent jump in Q1.

Business spending was down 0.1 percent on quarter, below expectations for a flat reading and down from the 2.7 percent jump in the previous three months.

Private consumption slid 0.8 percent on quarter, also missing forecasts for a fall of 0.4 percent after rising a downwardly revised 0.3 percent in the first quarter (originally 0.4 percent).

Overseas demand cut 0.3 percentage points from growth due to a decline in exports.

The GDP deflator was up 1.6 percent on year, missing expectations for a rise of 2.1 percent after climbing 3.4 percent in the first quarter.

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