Reported 4 months ago
Japanese companies decreased capital investment in the first quarter, signaling a likely continued contraction in the economy. The decline in capital expenditures on goods excluding software, led by a 3% cut by manufacturers, came despite strong corporate earnings growth. Profits surged 15.1% year on year, while sales rose 2.3%. This reduction in spending poses challenges for the economy and the central bank, reflecting concerns about inflation and global uncertainties. However, there are optimistic signs of increased capital investment planned by Japanese companies in the current fiscal year, as highlighted in the BOJ's Tankan survey.
Source: YAHOO