Japan's Q2 Growth Revised Upward Amid Business Spending

The second-quarter GDP of Japan has been revised upward to an annualized 1.4 percent, surpassing initial estimates of 1.1 percent. This growth is attributed to business spending that was less weak than initially thought, with capital expenditure falling 0.9 percent in the quarter.

This revision reflects new data on plant and equipment spending, which showed Japanese firms increased investment by 1.6 percent from a year earlier. Private consumption, accounting for over half of Japan's economy, remained flat in the second quarter.

The upward revision is notable given the potential impact of the Middle East conflict on global trade. However, economist Kento Minami at Daiwa Securities believes that growth around this level is not cause for concern and suggests the Bank of Japan can proceed with rate hikes.