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Japan April-June GDP upgraded to annualized 3.0% growth

This photo taken on May 28, 2018, shows a production line operated by Mazda Motor Corp. at its plant in Hofu, Yamaguchi Prefecture, western Japan. (Kyodo)

TOKYO (Kyodo) -- Japan's economy grew at an annual rate of 3.0 percent in the April-June quarter, the fastest pace in more than two years and much faster than initially reported thanks to an upswing in capital expenditure, the government said Monday.

The upward revision from a 1.9 percent expansion confirmed the world's third-largest economy had rebounded from a temporary slowdown in the previous quarter following two years of continuous expansion, the longest stretch of uninterrupted growth in 28 years.

The growth rate was the fastest since the January-March quarter of 2016 and beat the average 2.7 percent growth forecast by private-sector economists polled by Kyodo News.

The growth in real gross domestic product -- the total value of goods and services produced in the country adjusted for inflation -- corresponds to a 0.7 percent increase from the previous quarter, revised up from the Cabinet Office's preliminary reading of a 0.5 percent rise.

Companies have been stepping up investment in factories and equipment as earnings rise to historic highs. Quarter-on-quarter growth in capital expenditure was upgraded to 3.1 percent from 1.3 percent pushed up by a wide range of industries including electronics makers and chemicals firms.

Private consumption, which accounts for more than half of GDP, was unchanged at a 0.7 percent increase.

Public investment was slightly upgraded to 0.02 percent growth from a 0.1 percent decrease. Exports were unchanged at 0.2 percent growth.

Unadjusted for inflation, GDP grew an annualized 2.8 percent, up from a 1.7 percent expansion.

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