Japan Economy Grew on Spending Recovery, Revised Data Confirms

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By Megumi Fujikawa

(The Wall Street Journal) — The Japanese economy grew almost as fast as initially estimated in the April-June quarter thanks to a spending recovery, keeping the Bank of Japan on track for another rate increase in the near future.

Real gross domestic product expanded 2.9% on an annualized basis in the quarter, revised government data showed Monday. That compared with 3.1% growth in the preliminary estimates released in mid-August. The Japanese economy grew 0.7% from the previous quarter.

The revised data confirmed spending by both households and companies recovered, although the results were revised slightly lower.

Consumer spending increased 0.9% from the previous quarter, compared with a 1.0% rise in the preliminary reading. Capital expenditure rose 0.8%, compared with the initial estimate of a 0.9% increase.