TOKYO (Reuters) – Japanese companies raised spending on plant and equipment in January-March by 6.8% from the same period a year earlier, Ministry of Finance data showed on Monday.
The data will be used to calculate revised gross domestic product figures due on June 10. It followed a preliminary estimate that Japan’s economy contracted 2.0% annualised in the first quarter.
Capital spending slowed sharply from the fourth quarter, when it had jumped 16.4%.
The solid first-quarter capex data could bolster the case for the central bank to proceed with normalising monetary policy over time.
Capital expenditure fell 4.2% on a seasonally adjusted quarterly basis.
Monday’s MOF capex data also showed corporate sales rose 2.3% in the first quarter from a year earlier, and recurring profits increased 15.1%.
(Reporting by Tetsushi Kajimoto; Editing by Kim Coghill)
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