Capital spending by Japanese firms climbed 4.2 percent in the January to March period from a year earlier for the 12th straight quarterly increase, but declining profits dampened prospects for business expenditure, government data showed Wednesday.
Business investment by all nonfinancial sectors for purposes such as building plants and introducing new equipment totaled ¥13.68 trillion, the Finance Ministry said. The pace of growth slowed from an 8.5 percent increase in the previous quarter.
Pretax profits at businesses in all sectors covered in the poll dropped 9.3 percent on-year to ¥15.90 trillion, falling for the second consecutive quarter as exporters' profits were dented by a firming yen, a ministry official said.