TOKYO, Sept. 3 -- Japanese companies reduced capital spending across all industries in the April-June quarter by 1.7 percent from a year earlier, the Finance Ministry said in a report on Friday.
4 |5 o& K/ |( L According to the ministry, the pace of decline slowed significantly from the 11.5 percent annual slump in the previous quarter, as nonmanufacturers spent more on equipment during the recording period.
6 ~$ D# C% O6 \% n The data revealed that manufacturers' spending on plant and equipment dropped 10.5 percent, while spending among nonmanufacturers climbed 3.4 percent.
: ]+ A3 p1 u9 h) W) B+ G The overall decline in the April-June quarter was less than a median forecast for a 6.5 percent decrease, economists noted! c" t' V2 x$ B+ ]) n' d
The amount of corporate capital spending is very much industry specific, with some of the most capital intensive industries include oil, telecom and utilities." x# I0 B8 ]: u7 F2 z* H4 j
Capital spending in Japan has been decreasing for the last 3 years, although the pace of decline has eased over the last 3 quarters.$ C) Y1 m, h4 H* m
Corporate capital spending is a key gauge used by economists to calculate gross domestic product figures during the same period.
" H& l- _, ]$ Y2 M. a) z5 K B3 Y4 I Japan's revised GDP figures will be released on Sept. 10. |