TOKYO -- Japan's real gross domestic product gained 1.9% in September compared with the previous month, propelled by last-minute spending before the national consumption tax hike, the Japan Center for Economic Research said Monday.
Private consumption bounced 3% during the month as shoppers scrambled to stock up on goods before the tax rate rose to 10% from 8% on Oct. 1. This surge in consumer demand lifted GDP as a whole.
September's economic expansion outpaced the 1.5% increase recorded in March 2014, just a month before Japan's consumption tax was raised to 8% from 5%.
Capital expenditures also climbed 1.3% in September, underscoring how internal demand has driven economic growth.