Japan's economy accelerates by 0.3% in Q2, beating forecasts

[Japan economy and financial market growth concept, 3D rendering]
Kagenmi

Japan's economy grew by 0.3% in the second quarter, marking an acceleration from the 0.1% growth seen in the first quarter. The Q2 result exceeded the consensus forecast, signaling stronger-than-expected economic momentum.

Japan's economy expanded at an annualized rate of 1.0% in the second quarter, beating forecasts and accelerating from the previous quarter, fueled by strong private consumption, which was supported by government efforts to curb inflation.

Analysts caution that the full hit to growth may emerge in upcoming data, as Japan now faces a 15% blanket tariff on all exports to the U.S.

SEPARATELY, JAPAN’S INDUSTRIAL PRODUCTION rose 2.1% month-over-month in June 2025, topping flash data of 1.7% and reversing from a 0.1% fall in the previous month, and marks the first increase since March and the fastest pace in four months, driven by strong gains in transport equipment excluding motor vehicle.

The Nikkei 225 Index [https://seekingalpha.com/symbol/NKY:IND#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] climbed 0.5% to above 42,800, while the broader Topix Index advanced 0.75% to 3,080 on Friday, rebounding from the prior session’s losses. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] firmed toward 147 per dollar on Friday, erasing the prior session’s losses amid stronger-than-expected GDP data and rising expectations for a Bank of Japan rate hike

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* Japan's manufacturing PMI revised upward to 48.7 in April [https://seekingalpha.com/news/4438674-japans-manufacturing-pmi-revised-upward-to-487-in-april]
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* Japan’s unemployment rate unexpectedly drops to 2.4% in February [https://seekingalpha.com/news/4427230-japan-s-unemployment-rate-unexpectedly-drops-to-2_4-percent-in-february]