Despite a fourth-quarter contraction of Japan's economy, capital investment in the country rose 3.8% from a year earlier in the October-December quarter, the second straight quarter of increase, reports the Wall Street Journal.
Citing figures from the Finance Ministry, the Journal says corporate pre-tax profits rose by 27.3% in October-December. Corporate sales were up 4.1% from a year earlier.
The figures showed the rise in capital spending was confined to manufacturers, which posted a 13.0% gain, while non-manufacturers cut spending by 0.5%.
Profit growth, meanwhile, was stronger among non-manufacturers, which saw profits rise 31.6% compared with a 27.3% increase in the manufacturing sector, says the Journal.
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