Japanese companies raised spending on factories and equipment for a seventh straight quarter through to the end of 2022, data released on Thursday showed, offering relief to policymakers counting on a private demand-led recovery from COVID-19.

Finance Ministry data showed Japanese firms raised capital expenditure in October-December by 7.7% from the same period a year earlier, slowing from a 9.8% gain in the third quarter of 2022.

A boost to output capacity drove the higher capital expenditure requirements as manufacturers of chemicals and metal products, as well as service-sector firms, prepared for an uptick in demand.