Japan’s biggest companies reduced capital spending in the first quarter even as ordinary profits at manufacturers reached a record, as emerging uncertainty from escalating turbulence in the Middle East clouded prospects for future growth.
Capital expenditure excluding software fell 3.5% from the previous quarter in the three months through March, the Finance Ministry reported Monday.
The report also showed capital spending including software was flat compared with a year earlier, missing a median economist estimate of 4% growth by a wide margin. Sales edged 1.1% higher from a year earlier, while current profits rose 14.6%, soundly beating expectations.
