The median forecast was for 0.4%, according to a study by Nikkei Quick News. The slowdown was attributed to weak exports, which offset solid consumer spending and private investment. Japan had a 10-day holiday in May to mark Emperor Naruhito's ascension, which perhaps weighed on consumption and production, economists said.

 

The global economic outlook remains not certain in the face of heightened U.S.-China tensions. The International Monetary Fund in July lowered its overseas growth forecast for 2019 by 0.1 percentage point to 3.2%, although it said it expects growth to pick up to 3.5% in 2020. The Cabinet Office in July cut its forecast for Japanese growth to 0.9% from 1.3% for the year through March, 2020, quoting weak exports. That is equal to the latest IMF outlook.

 

Japan's exports fell, year on year, for the seventh straight month in June, as China's GDP growth slowed to 6.2% for April to June, the slowest pace since it began publishing data in 1992. Against this backdrop, Bank of Japan Gov. Haruhiko Kuroda said last week that he is 'more positive' about easing policy further to reach the central bank's 2% inflation target.

 

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