Output was slightly weaker than expected, but I wouldn't worry too much.
It's mainly a backlash from the powerful momentum of the last half-year.
It wasn't as good as expected but it doesn't change the outlook for the economy. The impression is that the recovery is spreading to smaller companies.
It's not just the headline figure that is improving. Full-time jobs are now on the rise, whereas a little while back it was just part-time and contract workers.
The figures show that the economy has climbed out of a weak patch and that the underlying trend in capital spending is very strong.
The underlying trend of consumer spending has been quite solid recently due to the improvement in the job and wage market. Consumption was strong last quarter and played a key role in supporting growth and we can expect further growth from consumption this year.
A domestic-demand-driven economic recovery is continuing, albeit at a slightly slower pace in Q3, ... Strong corporate earnings are fueling capital spending and spilling over to the household sector, supporting consumption.
Capital spending is strong and will continue to be a key driver of growth. Japan's economy has clearly emerged from last year's lull and will enjoy steady growth supported by domestic demand.
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