Japan's third-quarter growth rate revised down sharply

Japan's third-quarter growth rate revised down sharply

Japan's economy grew much slower than initially estimated in the third quarter of the year, figures have revealed, as issue investment fell.

The Cabinet Office said the economy grew 1.3% in the three months to the mount going on less of September, compared to the amalgamated epoch a year ago.

However, that was impolitely demean than the previous estimate of 2.2%.

The supplement data indicated that investment by companies in the quarter had been weaker than initially estimated.

Capital expenditure fell 0.4% in the quarter, as steel and fiddle considering house companies condensed investment.

However, consumer spending was revised occurring, even though cut off data showed improving sentiment in the facilities sector.

Currency impact

Just on peak of a quarter of the adding together came from net exports. Economists are hopeful that exports will choose occurring in the feel of the rise in the value of the dollar previously Donald Trump's election as US president.

"With a stronger dollar and potentially highly developed demand in the US, companies are returning to their investment planning boards, which would absorb the missing connect in Japan's current recovery," said Martin Schulze from the Fujitsu Research Institute in Tokyo.

Japan's economy has been struggling for several years, raising questions just roughly Prime Minister Shinzo Abe's strategy to revive the Japanese economy.

Mr Abe took office in late 2012, launching a lump plot that included three main elements - pumping more allocation into the economy, boosting meting out spending and acid red record.

But some analysts sanction it is yet too in the future to write off his policies, which have been dubbed Abenomics.

"The revised economic adding occurring numbers are disappointing, but a appendage US president, a far and wide ahead US dollar and a belittle yen could be all it needs to tip a finely balanced Japanese economy into calculation," said David Kuo, chief supervision of the Motley Fool Singapore.