The economy expanded in the July-September quarter at a much faster pace than initially reported, driven by stronger capital investment and private consumption ahead of the Oct. 1 consumption tax increase.

Gross domestic product grew at an annualized pace of 1.8 percent in the three months through September from the previous quarter, faster than an initial reading of 0.2 percent, according to revised Cabinet Office data released Monday.

The result was stronger than all the projections of economists surveyed by Bloomberg. The median forecast was for a 0.6 percent expansion.