Japan Q4 Corporate Capex falls 0.2%, tepid domestic demand

Corporate capital expenditure (capex) fell 0.2% year-on-year in Q4, marking the first decline in over three years

• following an 8.1% gain in Q3.

Preliminary Q4 GDP grew at an annualized 2.8%, up from 1.7% in Q3, supported by business spending and a surprise rise in consumption.

• Capex data will be used to calculate revised GDP figures due on March 11.

More:

• Corporate sales rose 2.5%, and recurring profits increased 13.5% in Q4.
• Despite recent strength in corporate investment, rising global economic uncertainties and U.S. trade policies are making Japanese firms cautious.
• Japan aims to double annual corporate capex to 200 trillion yen by 2040, with last year’s spending exceeding 100 trillion yen for the first time in 32 years.
• Prime Minister Shigeru Ishiba’s economic panel has urged bold policies to boost domestic investment amid shifts in global supply chains

This article was written by Eamonn Sheridan at www.forexlive.com.