TOKYO: The Japanese economy grew a revised 1.8 percent in July-September on an annualized basis in price-adjusted real terms, much faster than the preliminary reading of 0.2 percent, as corporate capital spending increased more than expected, government data showed Monday.

Seasonally adjusted real gross domestic product rose a revised 0.4 percent from the previous quarter, up from the 0.1 percent growth shown in the preliminary report released last month, the Cabinet Office said.

The economy grew for the fourth straight quarter.

Capital expenditures rose 1.8 percent in July-September from the previous quarter, steeper than the preliminary 0.9 percent, led by larger growth in spending by information communications equipment makers and the real estate industry.

"The GDP data showed that capital expenditures continued increasing moderately," a Cabinet Office official said.

Personal consumption grew 0.5 percent, against the preliminary 0.4 percent, chiefly reflecting higher expenditures on communications and an increase in phone call fees.

Last-minute demand before the Oct. 1 consumption tax hike grew only moderately, compared with the 2.0 percent increase marked in January-March 2014 before the previous consumption tax hike.

In nominal terms, July-September GDP expanded a revised 0.6 percent against the preliminary reading of a 0.3 percent rise. In annualized terms, nominal GDP was up 2.4 percent, compared with the preliminary increase of 1.2 percent.

The Cabinet Office also reported that Japan's GDP in fiscal 2018, which ended in March this year, rose 0.3 percent from the previous year in real terms, a downward revision from the previously estimated 0.7 percent growth, and grew 0.1 percent in nominal terms, down from the 0.5 percent increase, due to slower capital spending and personal consumption.

JIJI Press