Investing.com-- The Japanese economy grew slightly more than initially estimated in the third quarter on some support from export demand and capital spending, although private consumption growth was revised lower.
Gross domestic product grew 1.2% year-on-year, revised government data showed on Monday. The reading was slightly above prior estimates of 0.9%, but still remained well below the 2.2% growth seen in the prior quarter.
GDP grew 0.3% quarter-on-quarter, slightly better than the prior reading of 0.2%.
The improved GDP figures came as revised data on capital expenditure and external demand showed a smaller-than-expected contraction in the third quarter.
But sluggish private consumption remained the biggest weight on growth, with the third quarter figure being revised lower to show a 0.7% growth, compared to a prior reading of 0.9%.
While a pick-up in private consumption, on the back of bumper wage hikes, had helped support the Japanese economy earlier this year, the boost now appeared to be running out of steam.
GDP price index- a gauge of inflation- also read slightly lower than initially estimated- at 2.4% from 2.5%.
GDP growth in the third quarter slowed sharply from earlier in the year, raising some doubts over just how much support improving wages were providing to the economy.
The soft reading also spurred doubts over whether the Bank of Japan has enough headroom to raise interest rates further. Markets are split over whether the BOJ will raise rates further next week.