Japan Economy Growth Falls Short of Forecasts Amid Weak Consumption

The Japanese economy expanded at an annualised rate of 1.1% in the second quarter, falling short of the 2.0% median forecast in a Reuters poll.

This reading was below the revised 1.9% growth recorded in the January-March quarter and represents a slower-than-expected pace for Japan's economy.

The main drivers of this weakness were weak household consumption and business investment, which offset resilient exports.

Private consumption declined by 0.02% in the second quarter, marking the first contraction in eight quarters and contrasting with market expectations for a 0.5% increase.