TOKYO — Japan’s second-quarter gross domestic product contracted 0.4 percent, in the latest sign the world’s third-largest economy is losing momentum.
The economy grew 1.1 percent in the first quarter and 0.3 percent in the fourth quarter of last year. On an annualized basis, the economy contracted 1.6 percent in the second quarter.
Private consumption also fell between April and June. It was down 0.8 percent compared with the previous quarter, and fell 3 percent on an annualized basis.
“A look at individual demand items shows that our pre-release estimates for most items were not significantly different from first preliminary estimates, meaning that the larger-than-expected contraction in private consumption accounted for the disparity in actual real GDP growth and our forecast,” Nomura research analyst of Japan economics Tomo Kinoshita wrote in a report published Monday.
Exports dropped 4.4 percent from the first quarter, and 16.5 percent on the year.
Kinoshita wrote that the contraction in Japan’s real GDP for the second quarter will turn out to be temporary, with a rebound expected in the July through September quarter.
“The income environment is improving and we think this will most likely stem any further weakness in private-sector consumption seen in April to June and support a recovery from July to September,” Kinoshita wrote.