Japan’s economy expanded in the third quarter at a much faster pace than initially reported, as capital investment and private consumption proved much stronger than first estimated.
Gross domestic product (GDP) grew at an annualised pace of 1.8% in the three months through September from the previous quarter, faster than an initial reading of 0.2%, revised Cabinet Office data showed. The result was stronger than projected by any of the economists surveyed by Bloomberg. The median forecast was for a 0.6% expansion.
Revised third-quarter growth came in faster than the initial government estimate after data earlier this month showed stronger capital spending by manufacturers. Continued robustness in business investment is a positive sign that concern over the global slowdown has yet to buckle corporate sentiment.
“Capital spending was the key driver for the upward revision,” said Norio Miyagawa, senior economist at Mizuho Securities Co. A shortage of workers is forcing companies to invest in labor-saving equipment, while the Oct. 1 sales tax hike may also have pushed some companies to bring investment forward, he said.