Japanese Economy Defies Expectations

Japanese economy grew faster than analysts expected it would between January and March, increasing hopes that it is recovering from the recession last year.

The economy expanded 0.6% in the period compared to the previous quarter, marking its second consecutive quarter of growth.
The result was far better than the 0.4% analysts had expected.
On an annualised basis, the economy grew 2.4% in the period against forecasts of 1.5%.
Analysts said the first quarter growth rate was "very positive".
"The recovery seems to be well on track," Tony Nash, chief economist at Complete Intelligence, told the BBC.
"This must bring a smile to Prime Minister Abe's face and is a vindication that his economic policies are moving things in the right direction."
The country came out of recession in the fourth quarter of last year.
Japan relies on domestic consumption for about 60% of its economy, but it has been recovering from a sales tax hike which has dampened spending.
Private consumption and capital spending were both up 0.4% in the quarter, but capital spending was expected to rise by 0.8%.
Capital Economics analyst Marcel Thieliant said in a note that the acceleration in economic growth for the period "was mostly due to a jump in inventories".
"And a range of indicators point to a slowdown in the second quarter.
"Industrial production in March was 4% below its January peak, and thedrop in the manufacturing PMI (Purchasing Manager's Index) to a multi-month lowin April suggests that conditions are unlikely to improve quickly," headded.