Japan Q3 Financial and Non-Financial Industries Operating Profit 174 Trillion Won...35% Increase YoY

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Operating profits of Japanese corporate enterprises in the third quarter (July-September) of this year increased by more than 30%.

According to the corporate enterprise statistics for the third quarter released by the Japanese Ministry of Finance on the 1st, operating profits for all industries excluding finance and insurance rose 35.1% compared to the same period last year, totaling 16.7508 trillion yen (approximately 174 trillion won).

This marks the third consecutive quarter of growth in operating profits across all Japanese industries.

However, the growth rate noticeably slowed compared to the second quarter, which saw a sharp increase of 93.3%.

The continued increase in operating profits of Japanese companies this year is analyzed as a base effect due to the sharp decline in profits last year caused by the significant impact of COVID-19.

By industry, manufacturing saw a 71.0% increase, with operating profits in the information and communication equipment sector surging 3.6 times, driven by increased demand for electronic components used in automobiles.

The chemical industry, which handles semiconductor materials amid a global supply shortage, also showed a remarkable growth trend.

In contrast, operating profits in non-manufacturing industries grew by only 17.0%.

Operating profits in the service sector, including the dining industry, surged 74.9%.

The increase in operating profits in the service sector appears to be influenced by the base effect as well as government subsidies provided to companies in regions where COVID-19 emergency declarations were issued.

On the other hand, operating profits in the electric power industry, burdened by rising fuel costs due to increased energy prices such as crude oil, decreased by 49.5%.

Meanwhile, capital investment by all Japanese corporate enterprises in the third quarter rose 1.2% to 10.9276 trillion yen, marking the second consecutive quarter of growth.

This content was produced with the assistance of AI translation services.