Thursday, September 29

Japan’s Q2 capex rises 4.6% year/year, up for 5th quarter

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TOKYO — Japanese companies increased spending on plant and equipment for a fifth straight quarter in April-June as business sentiment remained resilient despite rising costs, China’s COVID lockdowns and supply chain disruptions.

Robust corporate spending is offering some encouragement for Japan’s growth outlook even as a global economic slowdown and domestic COVID-19 flare-ups threaten to weigh on near-term demand.

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Capital expenditure in the second quarter rose 4.6% from the same period last year, Ministry of Finance (MOF) data showed on Thursday.

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The pace of spending picked up from a 3.0% year-on-year increase in the first three months of this year.

The data will be used to calculate revised gross domestic product figures due on Sept. 8. A preliminary estimate last month showed the world’s third-largest economy expanded by a slower-than-expected annualized 2.2% in the second quarter.

Manufacturers’ business spending advanced 13.7% from a year earlier, the MOF data showed.

On a seasonally-adjusted quarterly basis, capital expenditure expanded 3.9% in April-June from the prior quarter.

Corporate recurring profits rose 17.6% in the second quarter from a year earlier, while sales were up 7.2%, the data also showed. (Reporting by Kantaro Komiya; Editing by Sam Holmes)