Japan's economy grew much more than initially thought in the first quarter, revised data showed today, driven by stronger capital spending.
The 1% expansion in the three months from January to March - or 3.9% on annualised basis - was sharply up from an initial estimate of 0.6% growth, according to the Cabinet Office figures.
Analysts said that capital spending is the last piece of the puzzle, with exports and consumption showing signs of recovery.
They added that a sustainable economic recovery is starting. Japanese corporate investment rose 2.7% from the previous quarter, well above an initial 0.4% expansion.
The upbeat data is good news for Tokyo's efforts to boost the world's number three economy, but household spending remains stubbornly weak as the Bank of Japan struggles to push up prices in a bid to end decades of deflation.
Despite wage rises at big firms and a tighter labour market, convincing people to splash out on consumer goods has been a struggle after Japan raised sales taxes last year to help pay down a huge national debt.
The rise hammered consumer spending and pushed the economy into a brief recession.
