Japan's 2nd-quarter GDP blows past expectations on robust domestic demand

Linked to increase in tourism, methinks.  Abenomics finally working, although we may have to pay the bill sometime down the line.

Tourism effect indeed. I can see it in the streets : 2013 was quiet, each additional year is seeing more activity with people wandering and they don't hzve Japanese face.

Then unfortunately for Japanese employees, no salary raise to ever happen. Debt burden is increasing faster than gdp...

Good news but any information as to why this is happening? It would've made for a much better article.

But I see that they use German packaging machinery to help achieve it.

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shoppers splashed out on durable goods, an encouraging sign that consumer spending is no longer the weak spot in Japan's economic outlook.

I'd guess this is swings and roundabouts, but hopefully us skeptics are completely wrong and suddenly Abenomics (really just Kurodanomics) is finally starting to work, somehow.

External demand subtracted 0.3 percentage point from GDP growth 

Oh how I love such wacky GDP accountant speak!

The GDP data for April-June show private consumption is finally starting to move in the direction that the BOJ and other government ministers have long predicted.

That's a pretty conclusive statement, but I suspect, to be proven completely wrong soon. 

The bright side is that if Japan is actually growing at 4% per annum then it's being achieved without 2% inflation. So can our central planners stop trying to cut the value of our money now please?

Guess what..all this good news is going to get shot to hell when Abe decides to raise the consumption tax to 10% BASED upon this news. He has been waiting for the economy to improve to raise it, and now here it comes.

PM Abe's policies have started producing results. GDP in Qrt 1 is up at 4% .More good results will be seen in coming quarters which will increase & boost PM Abe's popularity ratings among the Japanese public to the dismay of his critics.

My guess is that Japan's chronic labor shortage is making people feel safer for their jobs at least for near future. So they started spending rather than saving.

Domestic demand for the past decade has consisted of: 1) smart phones; 2) convenience store onigiri; 3) hair tint preparations; 4) cheap happoshu (instead of real beer).

It is NOT a growth driven increase, it’s a false marker FUNDED by the lost in the fog govt. It will have cost each of us paying taxes in Japan millions of yen.

My guess is that Japan's chronic labor shortage is making people feel safer for their jobs at least for near future. So they started spending rather than saving.

No labor shortage in the Kirin plan in the photo.

Simply, NO LABOR.

GDP growth without jobs growth is a meaningless statistic.

If this bears out, it's quite strong growth. It also means that the target of 2% inflation is no longer illusionary.

Hopefully growth plus a shortage of labor will increase pay in the aggregate.

Another version of this story credited the tight labor market, which in turn is boosting consumption, which in turn made the economy grow.

Just watch out for the 10 percent consumption tax hike.

I have to admit to being a tad rattled over the fire and fury huffing and puffing, stocking up on essentials and have ordered extras.

As for the business, have again order hardware early in case of possible shortages. Neighbours are doing likewise. If this behaviour proves common place this could explain, up to a point, the surge in consumer spending.

The SDF has started to deploy PAC 3 anti missile hardware in Kochi.

I'm not worried about a 10% consumption tax. Already bought all I need.

I suggest people go to one of the 5 states in the U.S. that do not have a consumption tax if they want that new leaf blower.

GDP growth without jobs growth is a meaningless statistic...

An economic report in Jun states:

"Solid expansions in new work and employment were reported as firms became increasingly optimistic towards economic prospects. "

"Overall backlogs meanwhile increased at the joint-highest rate in over three years, which led to firms hiring more staff. Employment growth was at the highest in just over a decade (on par with November 2007)."

(http://www.markit.com/Commentary/Get/06062017-Economics-Japan-set-for-robust-second-quarter-as-PMI-rises-to-three-year-high)

4% annualised is pretty good for a developed economy, though all macro measures are subject to revision. Expect a correction +/- within a month or so.

Still, glad to have done my bit by buying food at JA-influenced prices, currently peppers, blueberries, salads etc extracting value from my wallet. Can't believe people are laying in extra supplies of bog-roll though, just in case the Kim+Donald show goes up a gear. Must be groupthink?

The bright side is that if Japan is actually growing at 4% per annum then it's being achieved without 2% inflation. So can our central planners stop trying to cut the value of our money now please?

Exactly; pure growth without inflation taking its value away is what is best for everybody involved; certainly for the millions of Japanese workers earning paychecks. Seeing BoJ hacks spouting this "now that you're producing wealth, we can finally start taking it away from you" nonsense makes me so angry.

blows past

Seeing that expression in a headline makes me feel old. (exceeds, surpasses, goes beyond, outstrips).

If this is the modern way, at least change "robust" with "stonking".

Seems Abe will be pm for a few more years. PAC. were installed in four places. Nothing Abe have to worry for a while.

Sorry, I didn't notice it. Wages are stagnant, I'm spending less, everything is too expensive.

If Abe's government wants to keep up the growth momentum, then it should issue massive work visas. Could be 2-3 years for people who want to work in Japan; granted they provide proper documentation and be finger printed (for security purposes). Having more people consuming and paying into the system will help buffer the coming tax increase. For companies that hire them, more production should offset the cost of hiring.