Japan's economy expanded 0.4% quarter-on-quarter in April-June 2026, extending growth to a third consecutive quarter after the Cabinet Office revised its preliminary estimate of 0.3%. Annualized real GDP growth was lifted to 1.4% from 1.1%, although it remained below the 1.6% median forecast. The revision reflected a smaller-than-initially reported fall in corporate capital investment, which declined 0.9% rather than 1.2%. Private consumption, which represents about 60% of GDP, edged up 0.01% after an initially estimated 0.02% decline, while housing investment and public investment weakened and export growth was revised to 0.4%. Nominal GDP rose 1.3% from the previous quarter and 5.5% on an annualized basis. Separate data showed real wages rose 2.4% in July, their fastest annual gain since May 2021, while business-cycle indicators pointed to strength in investment-related activity. Tokyo stocks fell and the yen strengthened after the data, as markets continued to price a 98% chance that the Bank of Japan will raise its 1% policy rate by 25 basis points at its September meeting.