Figures show Japanese recovery taking hold

Japan's economy was surprisingly strongly in the April-June quarter amid a rise in business investment and better-than-expected…

Japan's economy was surprisingly strongly in the April-June quarter amid a rise in business investment and better-than-expected private spending.

Government data today showed GDP grew by 0.6 per cent on the previous quarter, which was the sixth successive quarter of growth and well above a median forecast of 0.2 per cent in a Reuterspoll.

On an annualised basis, GDP rose 2.3 per cent reinforcing signs that the country's economic recovery may be starting to get a firmer footing.

Business investment and sentiment has picked up and stock prices have risen, prompting both the government and the central bank to raise their assessments of economic conditions.

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The figures will make good reading for Prime Minister Junichiro Koizumi, who is facing a September election to keep his job as leader of the ruling coalition - and with it the post of prime minister.