- Japan's economic growth unexpectedly slowed to an annualized 1.1 % in the second quarter due to declining capital expenditure and flat private consumption amid Middle East conflicts and rising living costs.
- Capital investment dropped by 1.2 % unannualized, missing market expectations, while supply chain disruptions and higher fuel prices added operational pressures for businesses.
- The unexpected slowdown may complicate the Bank of Japan's policy communication regarding its potential interest rate hike, despite strong corporate profits and expected wage growth supporting a mild recovery trend.
