Capital spending by Japanese companies rose 1.6% in the second quarter (April-June) from a year earlier, according to newly released data. The increase signals that private-sector investment continues to maintain its growth momentum amid an economic recovery.
The figure comes as the Bank of Japan (BOJ) closely monitors economic indicators to adjust monetary policy. Capital spending is a key component of gross domestic product (GDP), reflecting corporate confidence in the economic outlook.
The 1.6% rise was lower than the previous quarter's increase, indicating a slight slowdown in the pace of investment expansion. However, analysts say stable capital spending remains a positive factor supporting Asia's fourth-largest economy.
Japan's Ministry of Finance releases capital spending data quarterly, based on a survey of companies with capital of 100 million yen or more. More detailed figures will be incorporated into the revised GDP report released later.
