The nation's gross domestic product expanded in the third quarter rather than contracting as previously thought, meaning the economy did not enter a recession earlier this year.
GDP rose an annualized 1 percent in the three months that ended Sept. 30, compared with a preliminary figure that had indicated a 0.8 percent drop, data from the Cabinet Office showed Tuesday. Economists, who changed their forecasts after surprisingly strong capital expenditure numbers last week, expected an increase of 0.2 percent.
The revision is good news for Prime Minister Shinzo Abe, who has made reviving the economy a priority for his administration, although growth continues to lag behind record corporate profits and rising share prices. The government is still expected to compile an extra fiscal spending package this month after the Bank of Japan in 2015 refrained from adding to its record monetary stimulus program.