TOKYO, 2nd September, 2024 (WAM) -- Pretax profits at Japanese companies hit a record-high 35.77 trillion yen (US$244 billion) in the April-June quarter, and their capital spending rose 7.4 percent from a year earlier, government data showed Monday, reflecting improving corporate activity amid an economic recovery.
Japanese news agency Kyodo News reported that Pretax profits grew 13.2 percent, rising for the sixth straight quarter, lifted by brisk overseas sales, a weak yen that boosts exporters' profits when repatriated and a surge in the number of foreign tourists to Japan.
Investment by all non-financial sectors for purposes such as building factories and adding equipment totalled 11.92 trillion yen, the second-highest figure for the April-June period and marking the 13th consecutive quarterly increase, the Finance Ministry said.
Sales grew 3.5 percent to 368.96 trillion yen, a record for the April-June quarter, on the back of an increase in food sales as companies passed on higher costs to consumers, according to the ministry.
The results will be used to revise the country's gross domestic product in the second quarter of 2024, which grew for the first time in two quarters. The Cabinet Office will release its update on 9th September.