Japan's Economy Slows Down in Q2 Amid Weaker Household Spending

Japan's economy grew at a slower-than-expected pace in April-June, with gross domestic product rising 1.1% in annualized terms, missing a median market estimate of 2.0% growth.

The data showed that private consumption, which accounts for more than half of economic output, was flat, falling short of a market estimate of a 0.5% increase.

Kazutaka Maeda, senior economist at Meiji Yasuda Research Institute, said 'Growth was positive, but the details were somewhat weaker than expected.'

Despite the disappointing results, Maeda believes that temporary factors are to blame and does not think it would suggest a weakness ahead or affect the timing of the Bank of Japan's next interest rate hike.