Japan’s economy decelerates amid U.S, China trade tensions

Japan says its economy had slowed in the 2019 April-to-June quarter amid escalating trade tensions between China and the United States.

The Cabinet Office said in a statement that the economy expanded at an annualized rate of 1.8 per cent for the third straight quarter of growth, slowing from the 2.8-per-cent expansion in the first three-month period.

The reading beat the 0.4-per-cent growth forecast by analysts polled by the Nikkei Business Daily.

The country’s 10-day holiday during the imperial succession in May helped boost consumption, analysts said.

Private consumption rose 0.6 per cent quarter-on-quarter, compared with a 0.1-per-cent increase in the January-to-March period,

Corporate investment climbed 1.5 per cent, following a 0.4-per-cent rise in the previous quarter.

The office also reported exports edged down 0.1 per cent in the April-to-June period, compared with a 2-per-cent contraction in the first quarter of this year.

Imports grew 1.6 per cent in the second quarter after shrinking 4.3 per cent in the previous period.

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