The upturn in capital spending - long a weak spot in
Still, analysts also say the economy faces the risks in coming quarters of consumer demand not bouncing back convincingly after the sales tax increase and exports staying weak.
"Corporate earnings have been improving and some facilities have been ageing, so some firms felt they could not delay capital expenditure any longer," said
"Nonmanufacturers are more confident about the economy.
Gross domestic product in the world's third-biggest economy rose at an annualized rate of 5.9 percent in the January-March period, government data showed on Thursday, as consumers rushed to buy before the sales tax increase to 8 percent from 5 percent.
The result handily beat expectations of 4.2 percent growth in a Reuters poll of economists and marked the fastest expansion since the third quarter of 2011, when the country was recovering from a devastating earthquake and nuclear disaster.
The capital spending figure could be encouraging for Prime Minister
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