— Japan Q2 Capex (Ex-Software) -1.5% Y/Y Vs Q1 -12.9%
— Japan Q2 Capex (Ex-Software) S/A +6.4% Q/Q Vs Q1 Rev -1.0%
— Japan Q2 Manufacturer Capex -10.5% Y/Y Vs Q1 -31.2%
— Japan Q2 Non-Manufacturer Capex +3.4% Y/Y Vs Q1 +0.4%
— Japan Q2 Non-Fncl Firm Current Profit +83.4% Y/Y Vs Q1 +163.8%
TOKYO (MNI) – The combined capital investment by Japanese
non-financial companies fell 1.7% in the second quarter of 2010 from a
year earlier, the 13th straight quarterly decline, but the pace of
decline decelerated from the 11.5% drop in the first quarter, a
government survey showed on Friday.
In the manufacturing sector, capex fell 10.5% from a year earlier
in the April-June quarter after falling 31.2% in the January-March
quarter and posting the eighth straight y/y drop, the quarterly survey
by the Ministry of Finance showed.
Among the 11 industries in the manufacturing sector, information
and communication electronics equipment makers were the only one that
increased capex, up 27.6% from a year earlier, reversing sharply from
the 26.6% drop in the first quarter.
Meanwhile, business investment by transportation equipment makers
continued to drop, down by 15.5% y/y in Q2, but the pace of decline
decelerated from -51.9% in Q1.
Capex in the non-manufacturing sector rose by 3.4% on the year in
the second quarter, improving from +0.4% in the first quarter. It was
the second consecutive y/y gain.
In the sector, spending on equipment dropped from a year earlier in
three industries, which was more than offset by increases in five other
industries.
Capex by information and communications carriers slumped by 20.9%
y/y in Q2 following the 6.1% drop in Q1, while spending among service
providers rose 27.5% y/y in Q2, up sharply from 27.0% in the previous
quarter.
Business investment excluding spending on software fell 1.5% from a
year before in Q2, with the pace of decline decelerating from -12.9% in
Q1.
On a seasonally-adjusted, quarter-over-quarter basis, capex
excluding spending on software rose 6.4% in April-June after an upwardly
revised 1.0% fall in January-March (previously -2.6%).
The quarterly survey by the Ministry of Finance also showed that
the combined current profits before extraordinary items of non-financial
firms at the parent level rose 83.4% from a year earlier, posting the
third straight y/y rise but slowing from the 163.8% surge in the first
quarter.
The increase was led by petroleum and coal products, and business
oriented machinery.
The ministry surveyed 31,666 companies with capital at or above Y10
million and received replies from 23,385.
The survey is the last piece of data from the demand side used to
compute revisions to gross domestic product for the April-June quarter
due out on Sept. 10. Capex in preliminary GDP data is based solely on
the supply side estimate.
Preliminary data released last month showed that Japan’s economy
expanded a real 0.1% in April-June from the previous quarter (an
annualized 0.4%), a third consecutive q/q rise, due to strong capital
spending and net exports.
When the Cabinet Office released its second preliminary estimate
for January-March, in June this year, real GDP was unrevised at 1.2% q/q
rise (annualized +5.0%) from a preliminary +1.2% q/q (annualized +4.9%)
increase.
Q1 GDP was revised down to a 1.1% q/q rise, or an annualized 4.4%,
when the Q2 data were released last month.
tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **
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