Japan's Q3 GDP UP 3.9%

The government announced that real gross domestic product increased 3.9% in annualized terms in the July-September period, up from a revised 1.8% growth in April-June. The average consensus was around 2.5%. Strong GDP growth was driven by consumer spending. Households stepped up purchases of fuel-efficient vehicles before government subsidies ended in September. Smokers also stocked up on tobacco before taxes were increased on Oct 1. Economists say the economy could have slowed in the third quarter if the one-off factors bolstering household spending were stripped out. They add that the current fourth quarter is likely to be impacted by a stronger yen, which will lead to a slowdown in exports.