By Jesper Koll
Japan's gross domestic product ((GDP)) report from last week was stronger than expected, up 2.1% quarter over quarter and annualized, against expectations for a small decline. Details confirm the positive surprise was due to a strong boost from public demand, and weak private demand pulling down imports (which reduces the drag from trade on GDP). Genuine positive forces were the strong rise in residential housing, up 4.5%, and the fact that private sector inventories did not rise. The former is key to our thesis that, although consumer spending is still basically flat,