Japan’s businesses increased investment modestly over the summer as profits continued to grow in a sign of resilience even as the economy shrank.
Capital expenditures on goods excluding software rose 0.3% in the three months through September compared with the previous quarter, the Finance Ministry reported on Friday. The data will be factored into revised gross domestic product (GDP) figures for the period. The initial reading showed the economy shrank at an annualized pace of 2.1%.
The latest capital spending figures were more encouraging than similar figures in the third-quarter GDP statistics, which showed business investment slipping 0.6% quarter on quarter. The second GDP reading is due on Dec. 8. The Finance Ministry data also showed that company profits rose 20.1% in the quarter compared with a year earlier, well ahead of consensus estimates.
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