Slowing Japan Economy Falls Short of Expectations

Japan's economy grew at a slower pace than expected in Q2, according to government data released on Monday. The country's gross domestic product (GDP) expanded by an annualized 1.1 percent compared to a median market estimate of 2.0 percent growth.

The slower-than-expected growth comes after the economy experienced an upwardly revised 1.9 percent expansion in the previous quarter, marking three consecutive quarters of growth.

Private consumption, which accounts for more than half of Japan's economic output, was flat and fell short of a market estimate of a 0.5 percent increase.

Capital spending, a key driver of private demand, declined by 1.2 percent in Q2, versus a market forecast for a 0.4 percent increase. However, net external demand added 0.5 percentage points to growth due to resilient exports.