Japan’s economy declines amid U.S-China trade tensions

TRACKING>>Japan said on Friday its economy had slowed in the April-to-June quarter amid escalating trade tensions between China and the United States.

The economy expanded at an annualized rate of 1.8 per cent for the third straight quarter of growth, slowing from the 2.8-per-cent expansion in the first three-month period, the Cabinet Office said in a statement.

The reading beat the 0.4-per-cent growth forecast by analysts polled by the Nikkei Business Daily.

The country’s 10-day holiday during the imperial succession in May helped boost consumption, analysts said.

Private consumption rose 0.6 per cent quarter-on-quarter, compared with a 0.1-per-cent increase in the January-to-March period,

Corporate investment climbed 1.5 per cent, following a 0.4-per-cent rise in the previous quarter.

The office also reported exports edged down 0.1 per cent in the April-to-June period, compared with a 2-per-cent contraction in the first quarter of this year.

Imports grew 1.6 per cent in the second quarter after shrinking 4.3 per cent in the previous period.