The nation's economy grew by a less-than-expected 0.3 percent in the April-June quarter, the government said Friday, but economists said better business and consumer spending, along with strong exports, suggest Japan's recovery this time may last.
Japan's price-adjusted gross domestic product has now grown for three straight quarters. The latest quarterly GDP figure translates into an annualized rate of 1.1 percent, the Cabinet Office said.
"Consumption is good, capital spending is good, exports are strong," said Takehiro Sato, senior economist at Morgan Stanley Japan. "Inventories fell, but this just means Japan is crouching now before the spring, which will last through 2006."