But it slowed from a 2.6 percent annualized rate of growth in April-June, the Cabinet Office reported Wednesday.
That was shy of expectations for a gain of 0.4% and down from 0.6% in the second quarter.
The most recent growth was fuelled by a 0.5 per cent lift in net exports during the quarter, helped by a stronger dollar. Analysts polled by Reuters had forecast a 1.3 percent expansion.
However, the figure represented a slowdown from the previous quarter where gross domestic product (GDP) grew by 0.6 percent as a recovery in private consumption could not maintain its momentum.
While the revival in exports thanks to recovering demand in China, the US and other major markets has breathed fresh life into the economy, Japan's long-term outlook remains uncertain. Instead, they have focused on expanding into faster growing overseas markets.
"With Japan's population set to shrink further in coming years, expanding sales destinations overseas makes good business sense", it said.