Japan's economy grows at 1.7 percent annual pace in Jan-Mar

"Consumer spending made a solid contribution to growth in the first quarter, but weak business and residential investment prevented Japan's economy from reaching escape velocity," Bill Adams, senior international economist at PNC Financial Services Group, said in a note.

Despite the upbeat first quarter figures, recent weak data have raised expectations that Prime Minister Shinzo Abe may put off a planned sales tax increase due in April 2017 to prevent further disruptions, given the faltering progress toward a sustained recovery.