According to a Reuters poll released on Friday, the Japanese economy is anticipated to have expanded during the April-June quarter at a pace similar to initial predictions, although there are still risks affecting the outlook.

Cabinet Office data, set for release on Monday, is expected to confirm a 3.2 per cent annualised growth rate for gross domestic product (GDP) in the second quarter, slightly above the previously reported 3.1 per cent. This adjustment would indicate a quarter-on-quarter expansion of 0.8 per cent, consistent with the initial reading.

The revised figures are likely to reveal a 1 per cent increase in capital expenditure for the second quarter, up from the initial estimate of 0.9 per cent. This revision reflects robust corporate spending on plant and equipment, according to Shinichiro Kobayashi, principal economist at Mitsubishi UFJ Research & Consulting.

The preliminary data also suggested a 1 per cent rise in private consumption, which represents more than half of Japan's economy, marking its first increase in five quarters. "In the July-September period, personal consumption will likely continue to rise due to wage hikes and the effects of a tax cut," noted Saisuke Sakai, senior economist at Mizuho Research and Technologies.

Looking ahead, analysts expect the momentum in economic growth to persist, supported by positive trends in wages and both personal and corporate spending. However, external risks, such as potential slowdowns in the U.S. and Chinese economies, could impact this outlook.

On Sept. 12, separate data from the Bank of Japan is expected to show that the corporate goods price index for August, which tracks the prices companies charge each other, remained stable month-on-month.

Source: Reuters