Japan Q2 GDP grows 0.3% as economy slows

The economy expanded by 0.3 percent in the second quarter, according to the latest report from the Bureau of Economic Analysis. The modest increase follows a slowdown in both consumer spending and private‑sector capital investment, which together weighed on the overall growth rate.

While services such as health care and education posted modest gains, personal consumption expenditures fell short of expectations, reflecting tighter household budgets and lingering uncertainty about future income. Business outlays on equipment and structures also declined, pulling down the capital spending component of GDP. The revised annualized growth rate of 1.2 percent for the quarter remains below the 2 percent target set by policymakers, suggesting that the economy may continue to face headwinds from subdued demand even as labor market conditions stay relatively firm.