Japanese businesses trimmed back capital spending over the summer after five straight quarters of gains, in a sign of cooling corporate sentiment as higher U.S. tariffs take a toll on a sputtering economy.
Capital expenditure on goods excluding software edged down 0.3% from the previous quarter in the three months through September even as corporate profits jumped by the most in two years, the Finance Ministry reported on Monday. In the preliminary gross domestic product report, corporate investment was reported to have expanded by 1%.
Monday¡¯s figures will be factored into revisions made to third-quarter gross domestic product data due Dec. 8. The preliminary report showed that the nation¡¯s economy contracted 1.8% from the previous quarter, the first decline in six quarters.
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