Japanese Firms Cut Spending By 4.9% In Latest Quarter

Japanese companies reduced spending on plant and equipment by 4.9 percent in April-June compared with the same quarter a year earlier, a Ministry of Finance survey
showed on Monday.

That compared with a consensus market forecast for a 11.5 percent increase, following a 13.6 percent rise in January-March.

Excluding software, capital spending fell 5.7 percent from a year earlier and was down 10.2 percent from the previous quarter on a seasonally adjusted basis.

In January-March, capital spending excluding software rose 14.2 percent from a year earlier and rose a revised 1.6 percent from the previous quarter.

The headline capital spending figure is regarded as providing a clue to revised gross domestic product data for the same quarter, which will be issued on Sept 10.

Preliminary data showed Japan's economic growth slowed to an annualised 0.5 percent in April-June from 3.2 percent in the previous quarter due partly to sluggish exports.