People walk by an electronic stock board of a securities firm in Tokyo, Monday, Dec. 9, 2019. Japan's economy grew at an annual rate of 1.8% in July-September, according to revised government data, better than the modest annual pace of 0.2% it gave as an earlier estimate.(AP Photo/Koji Sasahara)
The Associated Press
TOKYO (AP) - Japan's economy expanded at a faster than earlier estimated annual rate of 1.8% in July-September, powered by stronger consumer purchases and corporate investment ahead of an Oct. 1 tax hike.
However that tax increase is expected to hurt growth in coming months.
The data issued Monday were a revision of the earlier reported 0.2% growth in the last quarter. The quarterly rate of expansion was 0.4%.
The world's third largest economy has marked four straight quarters of expansion. The better results reported by the Cabinet Office also reflect a less severe drop in exports than preliminary reports suggested. However economists are forecasting much weaker growth in the October-December quarter.
A Bank of Japan measure of consumer demand showed a 7.4% drop in October following the increase in the sales tax to 10% from 8%. That 'œpoints to a sharp fall in private consumption in the fourth quarter,'ť Marcel Thieliant of Capital Economics said in a commentary.
'œWe are more pessimistic about the outlook for global GDP growth than most analysts and therefore think that external demand will remain weak," he said. 'œThe upshot is that we expect GDP growth to shrink by 0.2% next year."
People walk by an electronic stock board of a securities firm in Tokyo, Monday, Dec. 9, 2019. Japan's economy grew at an annual rate of 1.8% in July-September, according to revised government data, better than the modest annual pace of 0.2% it gave as an earlier estimate.(AP Photo/Koji Sasahara)
The Associated Press
FILE - In this Sept. 30, 2019, file photo, a signboard says "Consumption tax hike, 8 percent to 10 percent", at a mass home electronics retailer in Tokyo. Japan reports on Thursday, Nov. 14, 2019 its economy grew at an annual pace of 0.2% in July-September, supported by consumer purchases ahead of a tax hike. (Shinji Kita/Kyodo News via AP, File)
The Associated Press
People cross a street in Tokyo, Thursday, Nov. 14, 2019. Japan's economy grew at a modest annual pace of 0.2% in July-September, supported by consumer purchases ahead of a tax hike, the government said Thursday. (AP Photo/Koji Sasahara)
The Associated Press
People stand by the windows in a high-rise commercial building in Tokyo, Thursday, Nov. 14, 2019. Japan's economy grew at a modest annual pace of 0.2% in July-September, supported by consumer purchases ahead of a tax hike, the government said Thursday. (AP Photo/Koji Sasahara)
The Associated Press