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Japan firms' Q3 capital spending -13 pct yr/yr-MOF

Published 12/03/2008, 06:53 PM
Updated 12/03/2008, 06:56 PM

TOKYO, Dec 4 (Reuters) - Japanese companies cut spending on plant and equipment by 13.0 percent in the third quarter from a year earlier, a Ministry of Finance survey showed on Thursday.

The data, closely watched as it will be included in revised gross domestic product (GDP) data out next week, came after a preliminary estimate showed Japan's economy shrank for the second consecutive quarter in July-September, meeting a widely used definition of recession.

The ministry started to include financial holding firms in calculating the data from the April-June figures.

Under the old standard, capital spending also fell 13.0 percent in July-September from a year earlier, compared with a median consensus forecast of a 10.0 percent decline.

The fall in the headline spending figure has been exaggerated by a change in accounting rules on leasing.

Excluding investment by leasing companies, capital spending fell 4.2 percent.

Preliminary GDP data showed Japan's economy shrank a real 0.1 percent in July-September, following a 0.9 percent contraction in April-June. Revised GDP figures are due out at 8:50 a.m. on Dec. 9 (2350 GMT Dec. 8). (Reporting by Hideyuki Sano)

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