The Cabinet Office announced on November 17 that Japan’s real gross domestic product excluding price fluctuations for the July to September period fell 0.4 percent from the previous quarter.

This translates to contraction in the economy by an annualized 1.8 percent, posting the first negative growth in six quarters.

One of the factors behind the decline was a drop in exports.

Due to the impact of Trump tariffs, exports to the United States, particularly in the automobile and related sectors, fell significantly, resulting in an overall 1.2 percent negative growth in exports.

Housing investment also plunged, in a reactionary move following a surge in demand before revisions to laws related to energy-efficient housing took effect in April this year.

An expert said the readings could potentially have impact on the government’s economic policies, noting that personal consumption remains weak and this may prompt discussions about the need for large-scale economic measures to support spending.