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Japan Q3 GDP growth seen slowing sharply as consumption, external demand drag: Reuters poll

By Thomson Reuters Nov 5, 2026 | 9:05 PM

By Satoshi Sugiyama

TOKYO, Nov 6 (Reuters) – Japan’s economy is expected to have expanded only marginally between July-September, as recoveries in capital spending were largely ​offset by slowdowns in private consumption and ‌external demand, a Reuters poll showed on Friday.

• Real gross domestic product (GDP) likely grew an annualised 0.3% in the third quarter, according to the median forecast of 16 economists, slowing from a ‌1.4% ​expansion in April-June but remaining on ⁠track for a fourth ⁠straight quarterly increase.

• Without annualisation, the July-September growth rate was estimated at 0.1%.

• Economic growth will be among factors considered by the Bank of Japan in ​deciding whether to raise interest rates further. Many analysts expect the next BOJ rate hike as soon as ⁠next month.

• Capital expenditure was ⁠seen growing 1.5%, rebounding from the previous ​quarter’s 0.9% decline. In contrast, private consumption, which accounts for ​more than half of Japan’s GDP, is expected ‌to have declined 0.2%, the first contraction in seven quarters.

• “Service consumption was firm in July-September … but durable goods consumption contracted due to policy-related factors, while non-durable goods ⁠consumption was weak because of the negative impact of rising inflation,” analysts at SMBC Nikko Securities said in a note.

• ⁠Net external demand, ‌or exports minus imports, likely subtracted ⁠0.4 percentage points from GDP growth, after ​adding ‌0.5 percentage points in the previous quarter. ​Analysts said ⁠external demand likely turned negative as imports rose, reflecting progress in alternative crude oil procurement.

• The government will release the preliminary third-quarter GDP data on November 16 at 8:50 a.m. (2350 GMT on November 15).

(Reporting by Satoshi Sugiyama; Editing ​by Ronojoy Mazumdar)