Japan’s businesses cut spending for the first time in five quarters in a sign of concerns over the global growth outlook, an outcome that may prompt a downward revision to second-quarter economic growth data.
Capital expenditures on goods excluding software fell 1.6% in the three months through June from the previous quarter, the Finance Ministry reported Friday. The reading was weaker than the corresponding figure released earlier by the Cabinet Office, which indicated business spending was unchanged versus the previous quarter.
Spending on equipment including software grew 4.5% from a year earlier, missing the 8.3% gain forecast by analysts. Friday’s data will be factored into the revised gross domestic product (GDP) figures due Sept. 8.