Compared with the second quarter of the year, external demand added 0.5 percentage points to growth, as exports of goods and services expanded 2 percent (-1.5 percent in Q2) while imports dropped for the fourth straight quarter by 0.6 percent (the same as in Q2).
Domestic demand contributed with 0.1 percentage points, mainly boosted by a 2.3 percent advance in private residential investment (+5 percent in Q2) and a 0.4 percent gain in government consumption (-0.3 percent in Q2). By contrast, public investment fell 0.7 percent (+2.3 percent in Q2) while households' consumption showed no growth.
Meanwhile, changes in inventories subtracted 0.1 percentage points.
On an annualised basis, Japan's economy grew 2.2 percent in the third quarter of 2016, accelerating from a 0.7 percent expansion in the previous period and beating market expectations of 0.9 percent growth. It was the third straight quarter of expansion, led by external demand.