Japan’s economic growth rate doubled inside the third quarter thanks to big gains in capital expenditure, revised data showed on Friday, with expansion seen to continue thanks to buoyant exports.
The capital expenditure component of gross domestic product was revised to a rise of 1.1 percent via the previous quarter, well over the forecast 0.4 percent growth, as well as soaring above the preliminary 0.2 percent reading.
The economy grew an annualized 2.5 percent in July-September, more than the median estimate for 1.5 percent annualized growth as well as more than the preliminary reading of a 1.4 percent annualized expansion.
The figure translates into quarter-on-quarter growth of 0.6 percent, versus a preliminary reading of 0.3 percent growth as well as the median estimate for 0.4 percent growth.
The revised figures showed in which Japan will be in its longest uninterrupted period of growth since comparable data became available in 1994.
in which a boon to the government as in which will be likely to agree later on Friday a spending package to subsidize education as well as encourage more corporate investment.
Steady economic expansion also offers trust to the Bank of Japan in which inflationary pressure will build up next year as well as nudge consumer prices closer to its 2 percent inflation target.
Net exports contributed 0.5 percentage point inside the third quarter, unchanged via the preliminary reading.
Private consumption fell 0.5 percent in July-September, also unchanged via the preliminary reading.
Japan’s economy has expanded for seven consecutive quarters, as well as many economists expect growth to continue as consumer spending gains strength as well as export growth will be seen on track to continue.