Japan’s growth in the July-September quarter was greater than initially estimated, thanks to strong pre-tax hike consumption and corporate investment, government data showed on Monday, reports BSS/AFP.
The economy expanded 0.4 percent in the third quarter to September, better than the 0.1 percent growth recorded in preliminary data released last month, the latest Cabinet Office data showed.
The revision beat the market consensus of 0.2 percent growth, and came after 0.5 percent growth seen in the previous period. Corporate investment and household consumption were stronger than initially thought, helping the world’s third biggest economy to keep growing despite a drop in exports amid ongoing global trade tensions, the government said.
Analysts had pointed out that consumers rushed to make purchases before a controversial consumption tax hike from eight percent to 10 percent on October 1.
Japan’s household spending surged 9.5 percent year-on-year in September, according to official data released last month, as consumers rushed to complete purchases of furniture and other big-ticket items ahead of the rate rise. Some analysts expect a backlash in the fourth quarter as consumption slows after the tax hike.
