 Japanese spending picked up in late 2006 |
Resurgent consumer spending helped Japan's economy to grow faster than expected in the last three months of 2006, government figures have shown. The economy grew at an annual rate of 4.8% in the quarter, news that boosted the yen and added to speculation that interest rates would be raised soon.
Travel, flat-screen TV's and mobile phones were among the big sellers.
Cheaper heating oil and a mild winter freed up money for consumer spending, the government said.
Scrutinised
Japan's gross domestic product (GDP) grew by 1.2% in the October to December period from the previous quarter.
Consumption, which makes up half of Japan's gross domestic product, was up 1.1% on the same period a year ago.
"The data confirmed that the economy is continuing to recover," said Masayuki Goto, director of national accounts at the Cabinet office.
Policymakers raised the level of borrowing by a quarter point to 0.25% last July, ending Japan's long period of zero rates.
All economic data is being scrutinised for clues as to whether the Bank of Japan will raise interest rates at its meeting next week.
While Japan's government prefers low rates to keep the economic recovery on track, other countries are demanding a rise to counter weakness in the yen.
One-Minute World News 
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