InvestmentsMay 21 2015

Japan reports better than expected GDP growth

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Japan reports better than expected GDP growth

Positive data from Japan sent the stockmarket higher as it reported its gross domestic product (GDP) grew by an annualised 2.4 per cent in the first quarter of 2015.

Economists had forecast that Japan’s economy would expand by 1.5 per cent.

The Nikkei Stock Average closed up 0.03 per cent at 20,202.87, which according to reports is the highest it has closed since April 2000.

The Markit flash Japan manufacturing PMI, an indicator of manufacturing sector operating conditions in the country, also revealed a slight improvement, having climbed from 49.9 in April to 50.9 in May.

Amy Brownbill, economist at Markit, said: “Reflective of an overall improvement in operating conditions at Japanese manufacturers was a return to growth of both production and new orders in May. Moreover, the rates of expansion were faster than their respective long-term averages.

“Subsequently, employment rose at the quickest rate since December last year, while buying activity increased for the third time this year so far.”