Japanese corporate capital spending rose 6.4% year-on-year in Q1, rebounding from a slight decline in Q4 and suggesting resilient domestic demand despite broader economic challenges. The Ministry of Finance data released Monday shows capital expenditure grew 1.6% on a seasonally adjusted quarterly basis, helping offset weak consumption and exports that led to a preliminary 0.7% annualised GDP contraction in Q1.
The capex figures, which will feed into the revised GDP due June 9, reflect steady business investment—particularly in technology—to counter labour shortages from Japan’s ageing population. Corporate sales were up 4.3%, and recurring profits rose 3.8% year-on-year. However, risks remain as U.S. tariffs under President Trump could hit export-driven firms and dampen future investment plans.
The data is here from earlier ICYMI:
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