Investment by all nonfinancial sectors for purposes such as building factories and adding equipment totaled 10.15 trillion yen (92 billion U.S. dollars), marking the fastest growth since a 7.1 percent rise recorded in July-September of 2019, the finance ministry said.
Capital expenditure by manufacturers increased 4.0 percent to 3.40 trillion yen (31 billion dollars), with telecommunication equipment makers spending more money to enhance their production capacity for items such as semiconductors amid a global chip shortage.
In the non-manufacturing sector, investment grew 5.9 percent to 6.75 trillion yen (61 billion dollars). Expenditure from the services and construction sectors expanded over 30 percent to lead the increase.
Seasonally adjusted capital expenditure by all nonfinancial sectors, including spending on software, climbing 3.2 percent from the first quarter of 2021, up for the second successive quarter.
Taking into consideration the latest capital spending figures, the Cabinet Office is planned to release revised gross domestic product data for the same quarter on Sept. 8.
Preliminary data showed the country's economy grew an annualized real 1.3 percent in the three-month period, the first increase in two quarters, despite depressed consumption under the third virus emergency.
Pretax profits of domestic companies covered in the survey increased 93.9 percent to 24.07 trillion yen (218 billion dollars) from the previous year, up for the second consecutive quarter to report the sharpest rise since a 163.8 percent jump logged in January-March 2010 when the economy was recovering from the global financial crisis.
Sales rose 10.4 percent to 314.41 trillion yen (2.85 trillion dollars), up for the first time in eight quarters. Sales by manufacturers and non-manufacturers gained 20.1 percent and 6.8 percent, respectively.
The ministry surveyed 32,798 companies capitalized at 10 million yen (91 thousand dollars) or more, of which 22,565, or 68.8 percent, responded.
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