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Company Formation Japan



Investments Made by Japanese Firms Increase with 4.2%

Written by: Editor

The capital investments made by Japanese firms increased with 4.2% in July-September of this year, compared to the same period of last year, as announced by the Finance Ministry in November. This news reinstated the opinions that the local economy still is on a moderate recovery wave.
In this article, our company formation consultants in Japan cover a few important aspects related to this news. We also provide help to open a company in Japan.

Details on the investments made by companies in Japan this year

The business investment in all non-financial industries on plants, equipment and for other objectives counted JPY 10.79 trillion (USD 96 billion), which represents the fourth consecutive quarter of increase.
Pretax profits for businesses surveyed in the last poll rose by 5.5% to JPY 17.89 trillion, a figure which represents a record high for July-September, assisted by the local currency depreciation. Our Japan company formation advisors can offer more details on this subject.
In the three months before September, the economy increased with a yearly rate of 1.4% in real terms, being the longest growth run in the last 16 years of seven consecutive quarters.
The corporate investing, one of the main components of the local GDP, increased with 0.2% from the previous quarter.
Economists predict an upward revision on the local GDP information for July-September, which will reflect the latest capital spending information.

In which sectors did the businesses in Japan invest?

After the quarterly statistics, the capital investing made by manufacturers rose with 1.4% to JPY 3.88 trillion, since businesses wanted to increase the output capacity for electronic parts.
For the fourth consecutive quarterly increase, the non-manufacturing industry increased by 5.9% to JPY 6.92 trillion, which was also due to the increasing construction demand for hotels.
Business investment in all sectors in Japan rose with 1% on the quarter, except for software investments. Our company registration representatives in Japan can provide further information related to this news.
The sales rose by 4.8% to JPY 338.70 trillion, the most increase being registered in manufacturers of production equipment, wholesale and retail businesses.
If you need to know more about the investment increase in Japan this year, or for help in setting up a company in Japan, please contact our friendly staff.