Japan's Q3 economic growth has been adjusted to 1.2%, higher than economists' previous median forecast of 0.9%, on upward revision of capital expenditure and exports, and will be among factors that Bank of Japan (BoJ) will consider in deciding rate policies, reported Reuters on Tuesday.
The upward revision still leaves third-quarter GDP growth much slower than an annualised 2.2% expansion in Q2, which was largely in response to a contraction in the first quarter caused by output disruption in some auto plants.
Post revision, capital expenditure fell just 0.1% in Q3 compared to the previously stated 0.2% drop. Meanwhile, external demand, or exports minus imports, decreased economic growth by 0.2%, compared to 0.4% iterated earlier. However, private consumption, which accounts for more than half of the Japanese economy, rose 0.7%, less than the preliminary reading of 0.9%.
The data will be among factors the Bank of Japan (BoJ) will consider in the next central bank policy meeting from Dec 18 to Dec 19, as some analysts expect a hike in short-term interest rates from the current level at 0.25%.
The BOJ phased out a decade-long, radical stimulus in March and raised short-term interest rates to 0.25% in July.
Governor Kazuo Ueda has signalled readiness to revise rates accordingly given the inflation pressure.
Some are less optimistic about Japan's economy with overseas uncertainties, such as threats of higher tariffs by US President-elect Donald Trump, clouding the outlook.
