Capital spending by companies grew 7.4 percent in the January-March quarter from a year earlier to 13.697 trillion yen, the highest level in nearly four years, the Finance Ministry said Monday.

The growth, compared with a 3.5 percent increase in the previous quarter, marked the eighth straight quarterly expansion, underlining that the corporate sector has led the economic recovery, the ministry said in its quarterly survey.

The level of corporate spending on plants and equipment was the highest on record. The ministry began compiling such data, including spending on software, in July-September 2001.