Japan’s revised GDP data for the July–September quarter are expected to show a slightly deeper decline, reflecting slower growth in private corporate capital expenditure and public investment. The preliminary estimate had already marked the first contraction in six quarters, driven by weaker exports following the impact of U.S. tariffs.

Revised GDP is forecast to fall 0.5% on the quarter (down 2.1% annualized), compared with the preliminary reading of -0.4% (down 1.8% annualized).
A survey released on November 17 showed that preliminary GDP shrank 0.4% in the third quarter from the previous quarter. This was a slightly smaller contraction than the consensus forecast of -0.7%. The decline largely reflected a pullback in net exports, as expected after export front-loading ahead of U.S. tariffs boosted shipments in the second quarter.

Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy.

Gross domestic product is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios.

The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.