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Japan Q1 GDP Unrevised, -0.2% On Quarter

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Japan's gross domestic product was down 0.2 percent on quarter in the first three months of 2018, the Cabinet Office said in Friday's final reading.

That was unchanged from the May 16 preliminary reading, although it defied expectations for an upward revision to -0.1 percent.

On a seasonally adjusted annualized basis, GDP was also unchanged at -0.6 percent, missing forecasts for -0.4 percent.

In the fourth quarter of 2017, GDP was up 0.1 percent on quarter and 0.6 percent on year.

Nominal GDP was unrevised, down 0.4 percent on quarter but missing expectations for -0.3 percent.

The GDP deflator added 0.5 percent on year, unrevised and in line with expectations.

Private consumption was down 0.1 percent on quarter, missing forecasts for a flat reading - which would have been unchanged.

Business spending added 0.3 percent on quarter, exceeding forecasts for 0.2 percent and revised up from -0.1 percent.

The poor first quarter snapped a string of eight straight quarters of expansion for the Japanese economy, which had marked the longest such streak in more than three years.

Also on Friday:

• The Ministry of Finance said that Japan had a current account surplus of 1.845 trillion yen in April, down 6.8 percent on year.

That missed expectations for a surplus of 2.076 trillion yen following the 3.122 trillion yen surplus in March.

The trade surplus was 573.8 billion yen - also missing estimates for 746.4 billion yen and down from 1.190 trillion yen in the previous month.

Exports were up 7.4 percent on year to 6.632 trillion yen, while imports advanced an annual 7.7 percent to 6.058 trillion yen.

• The Bank of Japan said that overall bank lending in Japan was up 2.0 percent on year in May, coming in at 523.137 trillion yen. That was shy of estimates for 2.1 percent, which would have been unchanged from the April reading.

Excluding trusts, bank lending advanced an annual 1.9 percent - again missing forecasts for 2.0 percent, which would have been unchanged.

Lending from trusts climbed 2.3 percent to 68.187 trillion yen, while lending from foreign banks surged 14.5 percent to 2.445 trillion yen.

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