Japan's economy expanded at a faster-than-expected pace in the third quarter, but a decline in capital spending and gloom in the export market are raising doubts about the sustainability of growth in the world's second biggest economy. Japan's gross domestic product grew 0.7pc in the third quarter. That follows a revised figure of 1pc growth in the second quarter. On average, the market had expected a growth rate of 0.4pc for the third quarter. The third-quarter GDP data translates into an annualized expansion of 3pc. Personal spending, which accounts for nearly 60pc of Japan's GDP, increased 0.8pc from the second quarter, marking the fourth straight quarter of rise. Along with a decline in capital spending, economists said prospects for a sustained recovery in Japan's economy remained murky due to a slowdown in exports. The data show the country's exports grew 0.5pc in the third quarter, but the growth pace was significantly slower compared with a 5.9pc expansion in the second quarter. Imports, meanwhile, grew 1.8pc during the period.// www.fxcentre.com