Japan recovery speeds up; 3.9% 1st quarter growth

TOKYO (AP) — Japan's economy grew at a faster pace than initially estimated in the January-March quarter, expanding at a 3.9% annual rate on stronger consumer and corporate spending.

The revision announced Monday by the Cabinet Office was sharply higher than the 2.4% pace initially reported. On a quarterly basis, the economy grew 1%, compared with the initial estimate of a 0.6% increase.

Strong private demand in residential and corporate spending helped push growth higher, with corporate investment revised to a 2.7% quarterly increase, from the 0.4% preliminary estimate.

The government has pointed to the stronger growth as a sign the recovery is gaining strength.

Rising inventories also contributed to the upward revision, however, and many economists have forecast that growth slowed in the current quarter on slowing consumer spending and industrial output.