April-June capital spending up 1.5%

September 1, 2017

TOKYO- Japanese non-financial companies' combined capital expenditures in April-June rose 1.5 percent from a year before to 9,450.6 billion yen, up for the third straight quarter, the Ministry of Finance said Friday.

The reading was weaker than the median forecast of an 8.2 percent increase among the six economic research institutes surveyed by Jiji Press.

The non-financial companies' recurring profits in the first quarter of fiscal 2017 jumped 22.6 percent to a record 22,390 billion yen, backed by brisk new vehicle sales, the ministry said.

Their sales totaled 327,918.4 billion yen, up 6.7 percent, marking the third consecutive quarterly growth.

Capital spending in all industries, including the financial sector, rose 1.1 percent to 9,936.7 billion yen. All-industry recurring profits were up 21.7 percent at 26,019.6 billion yen.

The survey results "reflected a continued moderate recovery trend in the overall economy," a ministry official said.

The outcomes will be reflected in revised April-June gross domestic product data to be announced by the Cabinet Office on Sept. 8. Jiji Press