AI Data Insight
The inventory change in Japan's Q2 2026 nominal GDP gross capital formation recorded 365.4 billion yen, a significant reversal from the previous quarter's -2.83 trillion yen, reflecting that the corporate destocking phase has temporarily come to an end. Amid uncertainties in domestic and foreign supply chains and disruptions from the Middle East situation, companies initiated defensive inventory restocking, which became a key momentum supporting the upward revision of the Q2 GDP annualized quarterly growth rate to 1.4%. Looking ahead, it is necessary to observe whether weak terminal consumption will lead to unexpected inventory backlog, which could in turn affect the pace of subsequent monetary tightening by the Bank of Japan.