The economy expanded at a faster pace than expected in the July-September period, thanks to strong exports to other parts of Asia and an unexpected increase in consumer spending, the government said in a preliminary report released Tuesday.
However, the growth outlook was clouded by the sluggish economy in the United States and weak domestic housing starts, economists said.
Gross domestic product in the third quarter grew an annualized 2.6 percent, a rebound from a revised 1.6 percent contraction in the April-June quarter, the Cabinet Office said. On a quarterly basis, it grew a price-adjusted 0.6 percent from the second quarter.