Japan's capital spending in April-June rises 1.6% on year
TOKYO (Kyodo) -- Capital spending by Japanese companies in the April-June quarter rose 1.6 percent from a year earlier, government data showed Tuesday
Japanese companies increased their capital spending in the April-June quarter by 1.6% compared to the previous year, according to government data released on Tuesday. The total investment by all non-financial sectors in activities such as constructing plants and acquiring equipment amounted to 13.03 trillion yen ($82 billion), as reported by the Finance Ministry.
The sectors that experienced a rise in capital spending included services, goods rental, and leasing. However, there was a decrease in investments in transport machinery and telecommunications equipment. Despite the decline in certain areas, overall capital spending continued to grow.
In the same quarter, pretax profits of Japanese companies surged by 24.6% to reach 44.67 trillion yen, marking the seventh consecutive quarter of profit growth. Additionally, sales increased by 5.9% to 393.94 trillion yen.
These figures will be utilized to revise Japan's gross domestic product (GDP) data for the April-June period. The economy is projected to have grown at an annualized real rate of 1.1% for a third consecutive quarter. The revised GDP data will be published by the Cabinet Office the following Tuesday.
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- Japan corporate capex rises 1.6pct on year in April-June nst.com.my
- Japan corporate capex rises 1.6% on year in April-June channelnewsasia.com
