Japan's businesses boosted their spending for the fourth consecutive quarter, signaling recovery from the pandemic's impact, Bloomberg reported. According to the finance ministry, capital expenditure, excluding software, climbed 2.7% in the quarter ending in March. The data, stronger than the cabinet office's preliminary 0.9% increase, will be integrated into the revised GDP figures set for release on June 8. The increased capital expenditure might further elevate the preliminary GDP figure, indicating Japan's steady recovery. "Business spending is strong, particularly in the non-manufacturing sector," noted Saisuke Sakai, senior economist at Mizuho Research & Technologies. However, upcoming risks include a potential global economic downturn due to rising interest rates and China's slower-than-expected pandemic recovery, affecting Japan's export performance.
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