TOKYO - Japan’s economy grew much faster than expected in April-June to mark the third straight quarter of expansion, as robust household consumption and business investment offset the hit to exports from cooling global demand.
Gross domestic product grew an annualized 1.8% in the second quarter, the Cabinet Office’s preliminary data showed on Friday, far exceeding a median market forecast for a 0.4% increase. It followed a revised 2.8% gain in January-March. Private consumption, which accounts for about 60% of the economy, rose 0.6% from January-March to mark the third straight quarter of growth, thanks to brisk demand for cars and air conditioners, a government official told reporters.
Office construction and public works also boosted capital expenditure, analysts said, a sign the economy’s resilience was underpinned by those sectors less affected by slowing global trade. “The GDP data looks too good to be true, and may be inflated by one-off factors like a surge in government expenditure and leisure spending during the long holidays in May,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
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