Japan’s economic growth likely expanded for a third straight quarter in July-Sept, a Reuters poll showed on Friday, but weak private consumption and company capital spending suggest growth will remain fragile.

As per poll of 22 economics found the world third largest economy is expected to have a growth at an annualized rate of 0.9% in the third Quarter, following a0.7 percent expansion in the second quarter.

 That would translate into a muted 0.2 % rise in the quarter, the same pace as in the second quarter.

Hidenobu Tokuda, senior economist at Mizuho Research Institute said that, “The economy is escaping from a lull but we cannot say it returned to a track of sustainable growth because private spending and capital expenditure remained Low.”

“The economic growth of Japan is predicted to pick up moderately from Oct-Dec but negative risks continue to stay.”

A recovery in automobile production which may have contributed to the economy in July to Sept has liked waned, he also said that though government stimulus measures are expected to continue to provide some support for activity.

Private consumption, which accounts for roughly 60 percent of gross domestic product (GPD), likely stalled in the last quarter after improving in the previous two quarters, economists predicted.

The post Japan’s Economic growth seen edging up in Q3 but still fragile appeared first on Mcr World.