A surging stock market and a renewed “wealth effect” helped push the Japanese economy to its sixth consecutive quarter of growth — the longest unbroken streak in more than a decade and a possible lifeline for the foundering “Abenomics” revival programme.
According to a preliminary estimate from the cabinet office, Japan’s gross domestic product grew an annualised 4 per cent in the April to June quarter — higher than the market’s 2.5 per cent median expectations and a strong improvement on the revised 1.5 per cent annualised figure for the quarter to March.
Propelled by a combination of consumer and capital spending, quarter-on-quarter GDP rose 1 per cent in the second quarter, up from a revised 0.4 per cent rise in the previous quarter and well ahead of economists’ median forecast of 0.6 per cent.