The economy grew an annualized real 1.0 percent in the April-June period from the previous quarter, revised upward from a preliminary 0.8 percent rise, the government said Monday, underscoring the sustained recovery led by domestic demand.

The growth, measured in terms of gross domestic product, corresponds to a 0.24 percent rise from the previous quarter, compared with the initially reported 0.19 percent gain, for the sixth-straight quarter of expansion, the Cabinet Office said.

Private-sector economists said the slight upward revision of the GDP data was in line with market projections, and that economic recovery is expected to continue in the coming months on brisk capital spending and mild increases in personal spending.

“Growth rates are likely to move higher in the July-September quarter,” said Takahide Kiuchi, senior economist at Nomura Securities Co. “But the impact from slowing exports, which became evident from the April-June period, is likely to affect robust capital investment in the October-December quarter, resulting in a slowdown in domestic demand-led growth.”

According to the revised data, GDP expanded a nominal 0.32 percent in the reporting quarter, or an annualized rise of 1.30 percent, compared with a 0.28 percent quarterly increase in the preliminary report, or an annualized 1.10 percent growth.

The nominal figures also marked the sixth-consecutive quarter of growth.

The Cabinet Office said a government target of 2.1 percent growth in fiscal 2006 will be attained if the economy grows 0.3 percent on a quarter-to-quarter basis, or an annualized 1.3 percent, in the three quarters from the July-September period.

In the April-June period, personal spending, which accounts for about 55 percent of Japan’s GDP, increased a real 0.5 percent, unchanged from the initially reported 0.5 percent growth.

Capital investment climbed a real 3.7 percent from the previous quarter, revised downward from 3.8 percent growth in the initial report, due to falling investment by small companies, a Cabinet Office official said.

Exports rose a real 0.9 percent, unchanged from the initial report, while imports increased 2.0 percent, revised upward from the initially reported 1.8 percent rise.

Housing investment shrank a real 2.7 percent, unchanged from the initial report. Public investment fell 6.3 percent, revised downward from the preliminary 4.6 percent decline.

The inventory contribution to GDP growth was revised upward to minus 0.04 percent from minus 0.2 percent, leading to the slight improvement in the headline figures.

The GDP deflator dropped 0.8 percent from a year earlier, unchanged from the preliminary figure.

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