Japan’s economy grew less than expected in Q2. Gross domestic product rose an annualized 2.6%, following a 3.8% pace in Q1. The median forecast was for a 3.6% gain. The world’s third-largest economy slowed in Q2 as businesses cut investment, undermining gains in consumer and government spending that helped reduce deflationnary pressures.
On Friday, the Bank of Japan in its monthly report said that “Japan's economy is starting to recover moderately. Overseas economies as a whole are gradually heading toward a pickup, although a lackluster performance is partly seen.” Industrial production contracted 3.1% in June compared to a month earlier, when output dropped 3.3%. Year-on-year, production fell 4.6%, following a 4.8% decline in May.