AdvertisementAdvertisementBusiness01 Sep 2026 08:01AM (Updated: 01 Sep 2026 08:20AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST TOKYO, Sept 1 : Japanese corporate spending on plant and equipment rose 1.6 per cent in April-June versus the same period a year earlier, Ministry of Finance data showed on Tuesday, signalling domestic demand was underpinning the economy.The result, which will be used to calculate revised gross domestic product figures due on September 8, is likely to support the case for the central bank to raise its policy interest rate at its next board decision on September 18.Preliminary data last month showed the economy expanded by an annualised 1.1 per cent over the three months, slowing from 1.9 per cent in the previous quarter due to softer household and business spending.The capital spending figure compared with a near-flat result in the previous quarter. Spending grew 1.5 per cent on a seasonally adjusted quarterly basis.Show MoreShow LessThe data also showed corporate sales rose 5.9 per cent in the quarter from a year earlier, and recurring profit increased 24.6 per cent.Capital expenditure is a key gauge of domestic demand-led economic growth.Companies have been generally bullish about spending in recent years, backed by appetite for investment in information technology to offset a persistent labour crunch in the fast-ageing population.The government has pledged to use fiscal spending to spur private investment, arguing that stronger capital expenditure is essential to increasing growth potential and improving productivity.The pledge focuses on sectors the government deems critical to long-term growth, including artificial intelligence, semiconductors, advanced manufacturing and energy infrastructure.Source: ReutersNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST