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

- URL: https://talkfuse.com/story/japan-q3-gdp-growth-seen-slowing-sharply-as-consumption-external-demand-drag-reuters-poll/
- Published: 2026-11-06T03:05:32+00:00
- Updated: 2026-11-06T03:26:08+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/japan-q3-gdp-growth-seen-slowing-sharply-consumption-external-demand-drag-reuters-poll-6529916
- Topics: Asia, Business, Economy, Elections, Politics, World

## Key points

- Japan’s growth is forecast to slow to an annualised 0.3 per cent.
- Household spending and external demand are expected to weigh on GDP.
- The Bank of Japan will consider growth when setting interest rates.

## Summary

Japan’s economy is expected to have grown only slightly in the third quarter, as a rebound in business investment was offset by weaker household spending and external demand. The slowdown matters because growth is one factor the Bank of Japan will consider when deciding whether to raise interest rates again; many analysts expect a move as soon as next month.

A Reuters poll of 16 economists forecast annualised GDP growth of 0.3 per cent for July to September, down from 1.4 per cent in the previous quarter, or 0.1 per cent without annualisation. Capital spending was forecast to rise 1.5 per cent, while private consumption, which makes up more than half of GDP, was expected to fall 0.2 per cent for its first contraction in seven quarters. Net external demand was expected to subtract 0.4 percentage points from growth, after adding 0.5 points in the previous quarter; preliminary figures are due on 16 November.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.