TOKYO, 2nd June, 2025 (WAM) -- Capital spending by Japanese companies in the three months through March rose 6.4 percent from a year earlier, rising for the first time in two quarters, reflecting robust investment to boost production capacity and advance digitalisation, the Finance Ministry said Monday.
According to Kyodo News, investment by all non-financial sectors for purposes such as building factories and adding equipment reached 18.80 trillion yen ($131 billion), marking the highest level since comparable data became available in 2001.
Spending climbed 4.2 percent among manufacturers, supported by food and steel producers seeking to expand production, and by 7.6 percent among non-manufacturers, led by the information and communications sector amid a drive to build digital infrastructure.
Pretax profits increased 3.8 percent to 28.47 trillion yen in the first quarter of 2025, up for the second straight quarter, helped by the construction and real estate sectors.
Sales also rose 4.3 percent to a record 404.23 trillion yen, marking the 16th consecutive quarterly gain, driven by transport equipment, including automakers, as well as wholesalers and retailers such as trading houses.