Japan Capex Spending Rise May Help Temper Economy’s Contraction
- Non-manufacturing investment growth outpaces manufacturing
- Corporate profits jump providing leeway for further wage hikes
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Japan’s businesses increased investment modestly over the summer as profits continued to grow in a sign of resilience even as the economy shrank.
Capital expenditures on goods excluding software rose 0.3% in the three months through September compared with the previous quarter, the finance ministry reported on Friday. The data will be factored into revised gross domestic product figures for the period. The initial reading showed the economy shrank at an annualized pace of 2.1%.