- Third quarter business capex up 9.8% year-on-year, up 2.4% quarter-on-quarter
- Robust capital spending sustains outlook for economic recovery
- A slowdown in exports clouds the outlook
- Sales up 8.3%, recurring profit up 18.3%, record high for Q3
TOKYO (Reuters) – Japanese firms increased their capital spending in the July-September quarter, Finance Ministry data showed on Thursday. This suggests that business investment remains robust and is helping the economy recover from the coronavirus-induced recession.
Robust business investment may keep hopes of a private demand-led recovery, but overseas economies are on the brink of a China-led global recession as curbs on the zero-coronavirus policy backfired on growth It’s wobbly.
Japanese companies increased their capital spending in the third quarter by 9.8% from the same period last year, Finance Ministry data showed on Thursday. This is his sixth consecutive quarter of increase, data showed.
Seasonally adjusted capex increased 2.4% in the quarter, marking the second straight month of growth.
The data will be used to calculate revised gross domestic product figures due December 8, based on preliminary estimates that the Japanese economy contracted by 1.2% annualized in the third quarter. will be
The economy remains fragile as it recovers from the COVID recession. Yet Japan’s inflation rate remains modest by the standards of other advanced economies.
In a sign that a weaker yen may be helping boost profits for large export-dependent companies, data showed corporate recurring profits rose 18.3% from July to September, the seventh consecutive month of increases. and reached ¥19.8 trillion ($144 billion). A record amount for the third quarter.
Company-wide sales for the period from July to September increased by 8.3% year-on-year for the sixth straight quarter.
(1 dollar = 137.1600 yen)
Report by Satoshi Kajimoto.Editing by Changlan Kim and Kenneth Maxwell
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