Japanese companies increased investment more than forecast in the third quarter, even as slumping consumption pushed the economy into a recession.
Manufacturers led a 5.5 percent gain in capital spending in the three months through September from a year earlier, beating the 1.8 percent median in a Bloomberg News survey. Corporate profits climbed 7.6 percent and sales increased 2.9 percent, according to finance ministry data released today.
The unexpectedly strong gain in domestic investment is a boost for Prime Minister Shinzo Abe as he campaigns for re-election on his economic growth strategy after Japan slipped into its fourth recession since 2008. Abe’s been calling on companies to spend their cash hoards on investment and wages to pull the economy out of two decades of stagnation.
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