Highlights-Japan Q1 GDP +0.8% qtr/qtr, +3.3% annualised

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TOKYO, May 16 (Reuters) - Japan's economy grew 0.8 percent in the first three months of this year from the previous quarter, government data showed on Friday, against market expectations for a 0.6 percent rise.

That translated into an annualised increase of 3.3 percent, compared with a median market forecast of a 2.5 percent rise, marking the third straight quarter of expansion.

Following are key points of the the preliminary data for gross domestic product, the broadest measure of the economy, with details from a briefing by a Cabinet Office official and comments by Japanese Economics Minister Hiroko Ota:

- Exports accounted for a lot of the growth, led by trade commission fees for trading houses, nonferrous metals, cars, special industrial machinery and maritime cargo shipments.

- Exports grew for the 12th straight quarter, marking the highest growth since January-March 2004 when it grew 5.0 percent.

- Private consumption, which accounts for some 55 percent of GDP, also helped the growth, marking the highest increase since the final quarter of 2006, on demand for fresh fish and processed maritime products, accommodation services, personal computers, cars and electricity charges.

- The official said improvements in household income conditions may have contributed to personal consumption, with compensation of employees on nominal terms showing the biggest year-on-year rise since July-September in 2006.

- Corporate capital spending, which has been a key driver of the economy, shrank for the first time in three quarters, due to falls in the electronic communications equipment, office service equipment and general industrial machinery sectors.

- Private housing investment marked the first rise in five quarters, while the impact of the tighter building regulations adopted last June that hurt growth in the second half of 2007 has been fading.

- The GDP deflator, one of the broadest measures of price trends, fell largely because of a sharp fall in the export deflator due to the yen's rise. The GDP deflator reading was negative for the 40th straight quarter.

- Nominal GDP grew for the first time in two quarters but was below the real growth rate for the fifth straight quarter.

ECONOMICS MINISTER HIROKO OTA NEWS CONFERENCE

"They were relatively high growth figures. But the breakdown showed the growth was supported a lot by external demand, while capital spending fell 0.9 percent, the first decline in three quarters. Thus, we need to carefully watch the outlook."

"A slowdown in the U.S. economy is gradually hurting the (Japanese) corporate sector, with signs appearing in production and capital spending. I want to cautiously monitor that."

"On the bright side, compensation of employees rose 1.4 percent (in nominal terms) from a year earlier. That means wages per person rose 1.4 percent, so this shows the economy took one step towards overcoming deflation."

Asked about the gap between firm GDP figures for January-March and the government's recent assessment that the economy was at a standstill, Ota said: "For the monthly economic report, we looked at March figures, rather than January-March figures. In that sense, looking at machinery orders and capital spending figures, we have not changed our view that the economy is flat."

"This data showed the economy took a step forward to the end of deflation. On the other hand, higher food and gasoline prices at home are hurting consumer sentiment, adding a burden on households. So as a whole, caution is still needed."

Asked whether Japan has defeated deflation: "We still need to watch the situation carefully as rises in wages are still one-off, and the GDP deflator is falling more sharply."

On the earthquake in China: "Since the overall picture of the impact is not clear, I cannot say now how it would affect the Japanese economy, although we are wary." (Reporting by Tetsushi Kajimoto and Yoko Nishikawa; Editing by Hugh Lawson)