Japan's economy grew 0.3% in the three months from July to September, revised data showed today, just weeks after initial estimates showed that it had fallen into recession. 

The strong upward revision - from an earlier reading of a 0.2% contraction - comes on the back of upbeat factory output and capital spending that stoked optimism over the state of the world's number three economy. 

On an annualised basis, which stretches the data across a full year, Japan's gross domestic product expanded by 1% in the third quarter, the figures showed. 

The initial data threatened to deal an additional blow to Prime Minister Shinzo Abe.

He has staked his reputation on a policies of fiscal spending, aggressive monetary policy easing and structural reforms - dubbed Abenomics - aimed at reviving the long-struggling economy. 

The Japanese economy fell into a brief recession in 2014 after consumers tightened their belts as Tokyo hiked the country's consumption tax.

That downturn encouraged the Bank of Japan to sharply increase its already massive bond-buying programme - a cornerstone of Abenomics - effectively printing money to boost lending. 

But the moves, and Abe's efforts to overhaul Japan's highly regulated economy, have been slow going as the premier marks his third year in office later this month.