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Japan's Company Profits Fall, Capital Expenditure Remains Weak | Tony Seruga
Aug
31

Japan’s Company Profits Fall, Capital Expenditure Remains Weak

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  • Profits slump is the biggest in five years amid strong yen
  • Sales also slide in the quarter as demand remains sluggish

Japan’s capital expenditure data for the second quarter was slightly weaker than expected while company profits slumped as businesses held tight on spending amid a strong yen and sluggish demand at home and abroad.

Key Points

  • Capital expenditure rose 3.1 percent from a year earlier (forecast 5.5 percent).
  • Spending excluding software increased 3.1 percent over the same period (forecast 5.5 percent).
  • Company profits slid 10.0 percent during the second quarter, the biggest drop since 2011.
  • Sales declined 3.5 percent in the quarter….

Japan’s Company Profits Fall, Capital Expenditure Remains Weak

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