Japanese Corporate Spending Nearly Stalls
Figures from the Ministry of Finance showed that capital expenditure across all nonfinancial sectors — covering outlays on plant construction, machinery, and equipment — totaled 18.81 trillion yen (approximately 118 billion U.S. dollars) in the January–March period, representing a marginal year-on-year gain of just 0.047 percent. The result marks a dramatic deceleration from the previous quarter's robust 6.5 percent expansion.
Against the backdrop of sluggish investment, corporate earnings delivered a considerably brighter picture. Pretax profits climbed 14.6 percent to 32.63 trillion yen in the first quarter — extending a winning streak to six consecutive quarters of growth — while total sales edged up 1.1 percent to 408.66 trillion yen.
The freshly released data will feed directly into a scheduled revision of Japan's gross domestic product figures for the January–March quarter, which had already surprised analysts by registering a faster-than-anticipated annualized real growth rate of 2.1 percent.
The Cabinet Office is set to publish the revised GDP data on June 8.
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