ID :
125943
Fri, 06/04/2010 - 00:36
Auther :
Shortlink :
https://www.oananews.org//node/125943
The shortlink copeid
Japan`s capital spending falls in Jan.-March, as cautiousness lingers+
TOKYO, June 3 Kyodo -
Japan's capital spending in the January-March quarter fell for the 12th
straight quarter, although the pace of decline narrowed, as companies were
still cautious about spending amid lingering uncertainty over future prospects,
the government said Thursday.
Capital expenditure for all industries excluding the financial and insurance
sectors dropped 11.5 percent to 11,142.9 billion yen, slower than the 17.3
percent drop in the previous period, according to a report by the Finance
Ministry.
The government believes that Japanese companies are ''still in a severe
climate,'' although the overall sentiment has continued to recover from the
longstanding recession as indicated by a pickup in sales and profits, a
ministry official said.
''The capital spending is heading toward bottoming out, but the pace of
improvement is unlikely to be so smooth, as the levels of equipment operating
ratio and profitability are still sluggish,'' said Atsushi Matsumoto, an
economist at Mizuho Research Institute.
Spending on plant and equipment among manufacturers suffered a 31.2 percent
drop, falling for seven quarters in a row, as bleak demand and a sense of
uncertainty about the future outlook kept firms cautious, the ministry said.
Nonmanufacturers' spending increased for the first time in 12 quarters, up 0.4
percent.
Sales expanded 10.6 percent to 344.13 trillion yen, the first growth in nine
quarters, as firms making such items as automobiles and semiconductors enjoyed
an increase on the back of stimulus steps implemented at home and abroad.
Pretax profits grew 163.8 percent, the largest jump since the April-June
quarter in 1955, totaling 11,256.5 billion yen.
But the growth in sales and profits largely reflected a huge drop a year before
and the values remained significantly low compared with the same period in
2008, Matsumoto said.
The ministry polled 28,809 companies capitalized at 10 million yen or more, of
which 74.5 percent responded.
Think tanks are closely watching the capital expenditure data as the government
uses them in calculating revised gross domestic product figures for the same
quarter, due out next week.
In its May 20 preliminary report, the government said the nation's economy
expanded for the three months at an annualized pace of 4.9 percent, marking the
fourth consecutive quarter of growth.
The preliminary GDP report showed that capital spending rose 1.0 percent, the
second straight quarterly expansion.
==Kyodo
Japan's capital spending in the January-March quarter fell for the 12th
straight quarter, although the pace of decline narrowed, as companies were
still cautious about spending amid lingering uncertainty over future prospects,
the government said Thursday.
Capital expenditure for all industries excluding the financial and insurance
sectors dropped 11.5 percent to 11,142.9 billion yen, slower than the 17.3
percent drop in the previous period, according to a report by the Finance
Ministry.
The government believes that Japanese companies are ''still in a severe
climate,'' although the overall sentiment has continued to recover from the
longstanding recession as indicated by a pickup in sales and profits, a
ministry official said.
''The capital spending is heading toward bottoming out, but the pace of
improvement is unlikely to be so smooth, as the levels of equipment operating
ratio and profitability are still sluggish,'' said Atsushi Matsumoto, an
economist at Mizuho Research Institute.
Spending on plant and equipment among manufacturers suffered a 31.2 percent
drop, falling for seven quarters in a row, as bleak demand and a sense of
uncertainty about the future outlook kept firms cautious, the ministry said.
Nonmanufacturers' spending increased for the first time in 12 quarters, up 0.4
percent.
Sales expanded 10.6 percent to 344.13 trillion yen, the first growth in nine
quarters, as firms making such items as automobiles and semiconductors enjoyed
an increase on the back of stimulus steps implemented at home and abroad.
Pretax profits grew 163.8 percent, the largest jump since the April-June
quarter in 1955, totaling 11,256.5 billion yen.
But the growth in sales and profits largely reflected a huge drop a year before
and the values remained significantly low compared with the same period in
2008, Matsumoto said.
The ministry polled 28,809 companies capitalized at 10 million yen or more, of
which 74.5 percent responded.
Think tanks are closely watching the capital expenditure data as the government
uses them in calculating revised gross domestic product figures for the same
quarter, due out next week.
In its May 20 preliminary report, the government said the nation's economy
expanded for the three months at an annualized pace of 4.9 percent, marking the
fourth consecutive quarter of growth.
The preliminary GDP report showed that capital spending rose 1.0 percent, the
second straight quarterly expansion.
==Kyodo
