07.12.201723:24:00UTC+00Japan Economy Expands in the Third Quarter

The economy of Japan expanded twice as fast as initially estimated in the third quarter due to large gains in capital expenditure, revised data recently showed.

The economy expanded by an annualized 2.5 percent in July-September, more than the median estimate for 1.5 percent annualized growth and higher than the preliminary reading of a 1.4 percent annualized expansion.

The capital expenditure component of gross domestic product was revised to an increase of 1.1 percent from the quarter earlier, well over the forecast 0.4 percent expansion, and jumping above the preliminary 0.2 percent reading.

Real wages increased in October for the first time in nearly a year, offering some hope that consumer spending will pick up, separate data showed.

The revised figures showed that Japan is in its longest sustained period of expansion since comparable data became available in 1994.

The figure translates into quarter-on-quarter growth of 0.6 percent, against a preliminary reading of 0.3 percent growth and the median estimate for 0.4 percent growth.

The economy of Japan grew for seven quarters in a row, and several economists expect growth to continue as consumer spending gains momentum while export growth is also poised to continue.