Japan's Q1 GDP likely revised higher; C/A balance remained strong

Japan will release final Q1 GDP data on 8 June. Q1 GDP is likely to be revised slightly higher to 0.7% q/q on a seasonally adjusted basis (2.6% annualised) versus the preliminary reading of 0.6% q/q (2.4% annualised), expects  Societe Generale. Q1 business capex rose 7.3% y/y or 5.8% q/q, much better than consensus. As the figure will be used to calculate GDP, it might lead to an upward revision in private investment. 

"The current account (C/A) balance is also due out on 8 June. The C/A surplus is likely to have dropped to JPY 2.4tn in April from JPY 2.8tn in March due to the trade deficit. Still, this would be the highest April reading historically, if the C/A balance is as high as expected. The services balance likely improved significantly in Q1 due to a rise in foreign visitors, and primary income inflows probably remained strong", according to Societe Generale.