Japan economy gains speed, grows at 3.9 pct pace in Jan-Mar

Source: AP

TOKYO -- Japan's economy grew at a faster pace than initially estimated in the January-March quarter on stronger consumer and corporate spending, though economists anticipate slower growth in April-June.

The 3.9 percent annualized growth rate announced Monday by the Cabinet Office was sharply higher than the 2.4 percent pace initially reported. On a quarterly basis, the economy grew 1 percent, compared with the initial estimate of a 0.6 percent increase.

Strong private demand in residential and corporate spending helped push growth higher. Corporate investment was revised to a 2.7 percent quarterly increase from the 0.4 percent preliminary estimate.

The government has pointed to the stronger growth as a sign the recovery is gaining strength.

Read more: http://www.star-telegram.com/news/nation-world/world/article23432415.html