Japan’s Corporate Giants Smash Records: Q2 Operating Profit Soars to Unprecedented 35 Trillion Yen
Record-Breaking Operating Profit for Domestic Companies in Japan
Japan’s Ministry of Finance has released its latest corporate statistics survey, revealing a record-breaking operating profit of approximately 35 trillion yen for domestic companies from April to June this year.
The survey, conducted every three months, targets around 30,000 companies with capital of 10 million yen or more, providing valuable insights into the country’s economic performance.
The operating profit of domestic companies, excluding finance and insurance, reached 35.768 trillion yen, marking a 13.2% increase from the same period last year and the highest quarterly amount ever recorded.
The manufacturing sector saw a significant increase of 13%, driven by the growth of automakers and semiconductor companies. The weak yen has contributed to the surge in profits for automakers, while the increasing demand for data centers, fueled by advances in AI technology, has led to a rise in orders for semiconductor companies.
Non-manufacturing industries also experienced a notable increase of 13.3%, with service industries such as hotels and restaurants thriving due to the influx of foreign tourists visiting Japan. The construction sector has also received large-scale orders, contributing to the growth.
In addition to the record-breaking operating profit, the total amount of corporate facility investment has increased by 7.4% compared to the same period last year, reaching 11.9161 trillion yen.
The manufacturing sector saw a moderate increase of 1.4% in facility investment, driven by semiconductor companies strengthening their production systems for parts used in electric vehicles. Non-manufacturing industries, on the other hand, experienced a significant increase of 10.9%, largely due to new restaurant openings.
