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

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 percent for the third straight quarter of growth, slowing from the 2.8-percent expansion in the first three-month period, the Cabinet Office said in a statement.

The reading beat the 0.4-percent 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 percent quarter-on-quarter, compared with a 0.1-percent increase in the January-to-March period,

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

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

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