TOKYO, June 1 (Xinhua) – Business investment by Japanese companies fell 7.8 percent in January-March from the previous year, the government said in a report on Tuesday.
According to the Ministry of Finance, the capital expenditure of all companies in the non-financial sectors amounted to 14.47 trillion yen (132.17 billion US dollars) during the reporting period.
The ministry’s report showed, however, that pre-business profits it covered rose 26% to 20.07 trillion yen (US $ 183.29 billion), although sales amounted to 334 , 25 trillion yen (3.05 trillion US dollars), a drop of 3 percent.
Based on the latest business investment numbers, the revised gross domestic product data for the January-March quarter will be released on June 8 by the cabinet office.
Provisional data showed that during the January-March quarter, the Japanese economy declined 5.1 percent on an annualized basis over the previous three months, equivalent to a contraction of 1.3 percent. one hundred on a seasonally adjusted quarterly basis and accounted for the first decline in three quarters. government figures were shown.
Economists here believe that a second state of emergency would be declared between January 8 and March 21, during which people working from home were asked to avoid making unnecessary trips outdoors and through of the borders of the prefecture and to refrain from eating especially at night have significantly reduced economic activity.
As such, private consumption fell 1.4 percent, while services, which include meals, fell 2.6 percent. Durable goods sales also fell in the economy during the January-March quarter, falling 3.1 percent, as well as semi-permanent products, including clothing, which fell 3.0 percent.
Along with a fall in consumption and exports, economists noted a decline in private investment, among other signs of fundamental economic weakness, which can be combined to deepen the contraction in the first quarter of the year and which are spreading. until the second quarter.