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.
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.
