CHART OF THE WEEK
Japan’s first-quarter growth came in ahead of expectations. GDP rose at an annualised 2.2% rate fuelled by healthy demand across the board. Household spending is picking up and partially offsetting slightly weaker export growth. Business investment is slowing but is balanced out by improving inventories.
The faster growth figure is due in large part to inventory accumulation, which rose over the first three months after falling in the two previous quarters. With Japan’s PMI indices now settling at the historically comfortable level of around 52, growth is expected to remain buoyant and will likely drive 2017 forecasts higher. Since the start of the year, forecasts have already been revised up from 1.0% to 1.2%.
The opinion expressed above is dated May 22nd, 2017, and is liable to change
This document is not pre-contractual or contractual in nature. It is provided for information purposes. The analyses and descriptions contained in this document shall not be interpreted as being advice or recommendations on the part of Lazard Frères Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest. This document is the intellectual property of Lazard Frères Gestion SAS.
-- PDF --