Capital spending by Japanese manufacturers fell 2.7 percent in the July-September quarter compared with a year earlier as the global economic slowdown, especially in information technology, depressed prospects for growth, a Finance Ministry survey showed Wednesday.
Despite the drop, the first in 1 1/2 years, corporate investment in plants and equipment on an all-industry basis managed to edge up 0.5 percent, the ministry said.
Capital investment in all industries for the quarter totaled 10.72 trillion yen, marking the seventh consecutive year-on-year gain. But overall sales and pretax profits fell in the quarter as the effects of the ongoing economic slowdown hit Japan.