Q3 GDP rises annualised 0.9 vs 0.7 forecast
Consumption picks up to 0.9, capital expenditure down
Consumption a surprise but could be one off, says analyst

TOKYO, Nov 15 Reuters Japan39;s economy expanded by an annualised 0.9 over the JulySeptember quarter, government data showed on Friday, slowing from the previous three months due to tepid capital spending though an unexpected pickup in consumption added a bright spot.

The slower growth highlights the frailty of Japan39;s economy just as there is a growing risk of slowdown in the U.S. and further weakness in China which could weigh on exports.

Strongerthanexpected private consumption, however, supports the central bank39;s forecast of a solid recovery driven by higher wages and consumption helping inflation sustainably hit its 2 target and justifying higher interest rates.

The increase in gross domestic product was faster than a median market estimate of a 0.7, but slower than the revised 2.2 growth of the previous quarter, the data showed.

The reading translates into a quarterly rise of 0.2, matching economists39; median market estimate in a Reuters poll.

Private consumption, which accounts for more than half of economic output, rose 0.9, outpacing a market estimate of 0.2 and picking up from the revised 0.7 of the previous quarter.

The large increase in consumption was a big surprise, said economist Kengo Tanahashi at Nomura Securities.

Still, that may reflect oneoff factors such as recovery in auto…