Japanese growth gathers pace in first quarter

But still little sign of rise in consumer and business spending required to ensure sustainable recovery

Japan's economy grew at a faster-than-expected 2.4 percent annual pace in the January-March quarter, suggesting a recovery is gaining traction despite persisting weakness in corporate and household spending.

About 2 percentage points of the first quarter's growth reflected an increase in inventories stemming from the plunge in demand that followed a sales tax increase in April 2014. An increase of 7.5 percent in housing investment also drove growth.