A man walks on a pedestrian crossing on Nov. 25, 2021, in Tokyo. (AP Photo/Eugene Hoshiko)

       TOKYO (Kyodo) -- Capital spending by Japanese companies rose 1.2 percent in the July-September period from a year earlier, up for the second straight quarter, but growth was slow as some firms hesitated to invest amid the coronavirus pandemic, government data showed Wednesday.

       Investment by all nonfinancial sectors for purposes such as building factories and adding equipment totaled 10.93 trillion yen ($96 billion), according to the Finance Ministry.

       Capital expenditure by manufacturers edged up 0.9 percent to 3.92 trillion yen, increasing for the second consecutive quarter, as some metal product makers made investments they had postponed due to the pandemic.

       In the nonmanufacturing sector, spending grew 1.4 percent to 7.01 trillion yen, led by expenditures in the service sector including accommodation operators and restaurants that are bouncing back from a sharp downturn in the previous year.

       However, seasonally adjusted capital expenditure by all nonfinancial sectors, including spending on software, declined 2.6 percent from the second quarter of 2021 for the first drop in three quarters.

       "The results indicate the overall economy is showing weakness in the pace of its recovery in difficult circumstances amid the pandemic," a government official told reporters.

       Taking into account the latest capital spending figures, the Cabinet Office is scheduled to release revised gross domestic product data for the same quarter on Dec. 8.

       Preliminary data showed the country's economy shrank an annualized real 3.0 percent in the three-month period, the first decrease in two quarters.

       Pretax profits at companies covered in the ministry's survey soared 35.1 percent to 16.75 trillion yen, up for the third straight quarter, lifted by the information and communication electronics equipment sector that makes parts for vehicles.

       Sales rose 4.6 percent to 323.57 trillion yen, gaining for the second consecutive quarter, as chemical product makers met brisk demand for components used in semiconductors.

       The ministry surveyed 32,460 companies capitalized at 10 million yen or more, of which 22,883, or 70.5 percent, responded.

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