Japanese companies’ capital spending increased the most in more than a decade in April to June period, data from the Finance Ministry revealed Monday.
Capital spending surged 12.8 percent year-on-year in the June quarter, faster than the 3.4 percent increase a quarter ago. This was the strongest growth since 2007.
Capital spending excluding software advanced 6.9 percent on quarter.
Capital spending data points to an upward revision to GDP growth in next week’s second estimate, Marcel Thieliant, an economist at Capital Economics, said. Revised GDP data is due on September 10.