Mumbai: Corporate capital spending in Japan fell for the first time in over four years during the recent quarter, largely due to a cutback in spending in the leasing industry, a survey by the ministry of finance showed.

The MOF''s survey showed that capital spending dropped 4.9 per cent from a year ago during the April-June quarter to $100 billion, the lowest for corporate investment spending since the April-June 2005 period.

The decline was mostly due to a large drop in capital expenditure by the leasing industry where spending fell 22 per cent and accounted for half of a 13.1-per cent decline in spending by non-manufacturing industries, the ministry said.

Capital spending in manufacturing industries rose 11.7 per cent, marking the third straight quarter of double-digit growth and the 17th consecutive quarter of expansion.

During the January-March period, capital expenditure in Japan rose 13.6 per cent, profits gained 7.4 per cent and sales increased 6.3 per cent.
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