Capital spending by Japanese companies rose 5.3% in the April-June quarter from a year earlier, the first increase in five quarters, rebounding from last year's sharp fall caused by the COVID-19 pandemic, government data showed Wednesday.
Investment by all nonfinancial sectors for purposes such as building factories and adding equipment totaled ¥10.15 trillion ($92 billion), marking the fastest growth since a 7.1% gain logged in July-September 2019, the Finance Ministry said.
Capital expenditure by manufacturers grew 4.0% to ¥3.40 trillion, as telecommunication equipment makers spent more to strengthen their production capacity for items such as semiconductors amid a global chip shortage.