Japan capital spending up in Q2 ’24

Japanese companies increased their capital spending by 7.4 per cent year-on-year in Q2 2024, up from a 6.8 per cent rise in the previous quarter, according to data released by Ministry of Finance on Monday.

The Ministry reported that total investment in nonfinancial sectors, such as building factories and adding equipment, reached 11.92 trillion yen ($81.4 billion), marking the 13th consecutive quarter of growth in capital expenditure.

Manufacturers’ investment rose by 1.4 per cent, mainly in information communication and electronics machinery. Non-manufacturers, including service providers and electric utilities, saw a significant 10.9 per cent surge in spending.

Japanese companies saw a 13.2 per cent increase in pretax profits to a record 35.77 trillion yen in the second quarter of 2024, driven by strong overseas sales and a weakening yen.

Corporate sales in Japan climbed 3.5 percent to 368.96 trillion yen, setting a new record for the April-June quarter. Recurring profits also saw a significant rise of 13.2 per cent, the report added.

Attribution: Ministry of Finance report

Subediting: M. S. Salama