TOKYO (XFN-ASIA) - Japanese companies will boost capital investment by 8.7 pct in the current year to March 2008, led by power utilities and other nonmanufacturers, according to a survery by the Nikkei business daily.
The rise, which is smaller than the 12.6 pct increase seen in the previous year, would mark the fifth straight annual increase.
For the first time in five years, nonmanufacturers will surpass manufacturers in spending growth, as they plan a 9.8 pct increase compared to the 8.0 pct hike seen by manufacturers.
The Nikkei survey, which covers 1,556 companies, shows that capital investment will rise in 30 of the 33 industries in the current fiscal year, compared with 26 in the previous year.
Among key nonmanufacturers, power companies will spend 28.3 pct more this fiscal year, while railway and bus operators lift outlays by 18.9 pct and marine transport firms see a 19.6 pct increase in capital spending.
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