Ansuya Harjani, CNBCAugust 12, 2013 15:20
Japan's disappointing growth figures for the second quarter highlight the absence of a factor crucial to a sustained revival in the world's third largest economy: a turnaround in corporate investment.
The economy grew 0.6 percent quarter on quarter in the April to June period, lower than expectations for 0.9 percent growth. The large miss was driven by an unexpected decline in capital expenditure, which fell 0.1 percent, compared with forecasts for a rise of 0.7 percent, and a reduction in private sector inventories. Inventories subtracted 0.3 percent percentage point to growth.