First reading for first quarter 2019 economic growth in Japan. These numbers seem rather bizarre ….

GDP (seasonally adjusted) for Q1, preliminary, 0.5% q/q: BEAT

  • expected -0.1%, prior +0.4%, revised from +0.5%

GDP Annualized (seasonally adjusted) for Q1, preliminary 2.1% y/y: HUGE BEAT

  • expected -0.2%, prior +1.6%, revised from +1.9%

GDP Nominal (seasonally adjusted) for Q1, preliminary 0.8% q/q:

  • expected 0.1%, prior 0.4%

GDP Deflator y/y for Q1, preliminary 0.2%:

  • expected 0.2%, prior -0.3% (deflator is an inflation indicator)

GDP Consumer Spending y/y for Q1, preliminary -0.1% q/q, - Miss

  • expected -0.2%, prior was 0.2%, revised from 0.4%

GDP Business Spending y/y for Q1, preliminary -0.3% q/q - Miss

  • expected -1.9%, prior was 2.5%, revised from 2.7%

The consumer is a miss, as is capex. Positives from trade(!!!):

  • net exports positive (first time in a year) despite exports -2.4% q/q … biggest fall for these since Q2 2015
  • Imports shrunk rapidly, -4.6% q/q, biggest fall since Q1 of 2009

As far as good GDP results go these are pretty bad is my take.

Mustn't complain though, if the focus is the headline its a ripper!