Capital spending rose 9.5 percent in the October to December quarter of 2005 on an all-industry basis compared with the previous year, the Finance Ministry said Monday.
The latest rise was the 11th straight quarter of expansion, underscoring the strength of the corporate-led economic recovery.
The figure was down from a 9.6 percent increase in the preceding quarter of 2005 and weaker than the average market projection of about 10 percent. But the solid growth in corporate investment spurred speculation that the Bank of Japan may abandon its quantitative credit-easing policy at a two-day Policy Board meeting beginning Wednesday.
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