Japanese growth surges ahead of rise in sales tax


Japanese GDP growth surged to its fastest level in over two years in Q1, accelerating to an annualized 5.9% from 0.3% in Q4 and breezing past consensus of 4.2%.

On quarter, GDP +1.5% vs +0.2% +1%.

The economy was boosted by personal consumption soaring an annualized 8.5% as shoppers rushed to make purchases prior to sales tax rising to 8% from 5% on April 1. Businesses lifted capex 4.9%, while they also increased output, capex, jobs and overtime pay.

The downside of the strong overall print is that the economy is expected to pull back in Q2.

The Nikkei is -0.75% as Sony weighs on sentiment following its poor earnings reports, while the USD-JPY is flat at ¥101.93. (PR)

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Comments (2)
  • BruceInKY
    , contributor
    Comments (444) | Send Message
     
    "The economy was boosted by personal consumption soaring an annualized 8.5% as shoppers rushed to make purchases prior to sales tax rising to 8% from 5% on April 1."

     

    BANZAI! The rabbit hutches are packed to the rafters with bags of rice, tubs of miso, crates of nihonshu, paper products, and jars of tsukemono.
    15 May 2014, 08:21 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13187) | Send Message
     
    I totally agree. This is a farce of the worst kind. A celebration to ignorant economic theory believing that growth can be spurred through the threat of still higher taxes if you don't buy now. It's the government's version of a holiday sale. Get your stuff at a discount because it's going up tomorrow.

     

    What's his next trick: "Next year sales tax goes to 12%"?

     

    He already blew his QE lets shower all bankster friends with trillions in hopes a few fall into the hands of the general economy. In fact he did this so many times Japan is choking on it and can't do any more of it without discrediting their currency.
    15 May 2014, 09:32 AM Reply Like
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