Economy at 4% expansion

JAPAN’S economy expanded at the fastest pace in more than two years in the second quarter as consumer and company spending picked up, highlighting a long-awaited bounce in domestic demand. The world’s third-largest economy expanded by a much stronger-than-expected annualised rate of 4 percent in April-June, posting its longest uninterrupted run of growth in a decade, government data showed yesterday. Activity is expected to continue to improve in coming quarters, offering the Bank of Japan hope that a tight labour market is finally starting to boost wages and consumer spending, which in turn should make it easier to generate sustained inflation. The rosy data was also a vindication for Japanese Prime Minister Shinzo Abe’s government, which has faced criticism.