TOKYO, Sept. 2 (Xinhua) -- Capital spending by Japanese companies increased 7.4 percent year-on-year in the April-June quarter, accelerating from the previous quarter when it grew 6.8 percent, government data showed on Monday.
Investment by all nonfinancial sectors for purposes such as building factories and adding equipment came to 11.92 trillion yen (about 81.4 billion U.S. dollars), marking the 13th consecutive quarterly increase, the Finance Ministry said.
Investment by manufacturers increased 1.4 percent, driven by information communication and electronics machinery, while spending by non-manufacturers led by service providers and electric utilities grew 10.9 percent, data showed.
Meanwhile, pretax profits at Japanese companies grew 13.2 percent to a record-high 35.77 trillion yen in the second quarter of 2024, rising for the sixth straight quarter, lifted by brisk overseas sales and the yen's weakness.
Corporate sales grew 3.5 percent to 368.96 trillion yen, a record high for the April-June quarter, and recurring profits increased 13.2 percent, data showed.
Capital spending is one of the key gauges of the country's gross domestic product in the second quarter of 2024. The results will be used to calculate revised gross domestic product figures due on Sept. 9. ■