March 10, 2014
Summary
◆The real GDP growth rate for the Oct-Dec 2013 period (second preliminary estimate) was revised downward from the first preliminary estimate (+1.0% q/q annualized and +0.3% q/q) to +0.7% q/q annualized and +0.2% q/q. Figures were down somewhat below market consensus (+0.9% q/q annualized and +0.2% q/q), but there were no surprises. We thus maintain our view on the economy.
◆By GDP demand component, after factoring in figures in Financial Statements Statistics of Corporations by Industry (Ministry of Finance [MOF]), capex saw a downgrade from the first preliminary estimate (from +1.3% q/q to +0.8%). Meanwhile, public sector fixed capital formation, which attracted differing views, was revised downward from the first preliminary estimate of +2.3% q/q to +2.1%. In addition, personal spending was also downgraded somewhat from +0.5% q/q on the first preliminary estimate to +0.4% on the second preliminary estimate, helping to push the GDP growth rate further downward.
Daiwa Institute of Research Ltd. reserves all copyrights of this content.
Copyright permission of Daiwa Institute of Research Ltd. is required in case of any reprint, translation, adaptation or abridgment under the copyright law. It is illegal to reprint, translate, adapt, or abridge this material without the permission of Daiwa Institute of Research Ltd., and to quote this material represents a failure to abide by this act. Legal action may be taken for any copyright infringements. The organization name and title of the author described above are as of today.