INCREASED CAPITAL EXPENDITURE BY JAPANESE ENTERPRISES IN THE SECOND QUARTER OR BOOSTING GDP

Japanese enterprises increased capital spending in the second quarter, demonstrating that the business community could better cope with the impact of the Middle East conflict. Data released on Tuesday in Japan show that capital expenditures excluding software increased by 2.9 per cent in the three months ending June. Capital expenditures, including software, increased by 1.6 per cent over the same year, compared to the 0.3 per cent decrease previously forecast by economists. Sales increased by 5.9 per cent over the same period and profits increased by 24.6 per cent during the period, well above expectations. These results may indicate that the GDP data for the second quarter, published on 8 September, will be revised upwards。