Armaan blog

Japan economic growth accelerates in Q3

TOKYO (Reuters) – Japan's economy grew 0.9 percent in July-September from the previous quarter, more than market expectations, as consumption got a last-minute boost from expiring government stimulus measures.

But net external demand made no contribution to overall economic growth, boding ill for the export-reliant economy.

The expansion in gross domestic product (GDP) translates into an annualized increase of 3.9 percent, the Cabinet Office said on Monday, above a median market forecast of 2.5 percent.

The fourth straight quarter of expansion was bigger than a revised 1.8 percent annualized growth in April-June and exceeded U.S. growth of 2 percent during the same period.

Private consumption, which makes up about 60 percent of the economy, rose 1.1 percent as government subsidies for low-emission cars gave a last-minute boost to spending before expiring in September.

Many analysts expect economic growth to slow sharply or even shift to contraction in the final quarter of this year as weakening overseas demand and the strong yen hurt exports and factory output.

(Reporting by Leika Kihara and Rie Ishiguro; Editing by Michael Watson)