Japan’s corporate investment in factories and equipment grew 2.9% in the July–September quarter compared with the same period a year earlier, according to new data from the Ministry of Finance. Although this marks a slowdown from the strong 7.6% increase seen in the previous quarter, capital expenditure remains a crucial driver of domestic demand and a key indicator of Japan’s economic resilience.
Economist Kazutaka Maeda of the Meiji Yasuda Research Institute noted that the weaker pace of growth is “slightly concerning,” especially when evaluating the outlook for the coming months. However, he maintains that business investment should stay relatively firm. Companies continue to show strong interest in software, automation, and digital tools—areas critical for addressing Japan’s chronic labor shortages, particularly as its population ages.
Seasonally adjusted data shows capital spending declined 1.4% from the previous quarter, introducing potential downward pressure on Japan’s revised third-quarter GDP, scheduled for release on December 8. Preliminary figures already indicated the economy shrank at an annualized rate of 1.8% during the quarter due to weakened exports and the impact of U.S. tariffs, marking Japan’s first contraction in six quarters.
Despite broader economic headwinds, Monday’s report highlighted pockets of strength. Corporate sales edged up 0.5% year-on-year, while recurring profits surged 19.7%, suggesting many Japanese companies remain resilient even as global trade tensions linger. The electrical machinery and equipment sector posted particularly strong profit growth, while the auto industry continued to face challenges.
Capital expenditure has remained solid in recent years, supported by heavy investment in information technology and automation as businesses work to overcome persistent labor shortages. Analysts expect this trend to continue, helping stabilize the economy as high inflation squeezes household spending and exports remain under pressure from U.S. trade policies.
The government is also prioritizing investment as part of its economic strategy. It recently approved a 21.3 trillion-yen ($136 billion) stimulus package—its largest since the COVID-19 pandemic—aimed at bolstering key sectors tied to economic security and long-term growth.


Wall Street Futures Dip as Broadcom Slides, Tech Weighed Down Despite Dovish Fed Signals
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen
Oil Prices Edge Higher as U.S. Seizes Sanctioned Venezuelan Tanker
Russia Stocks End Flat as Energy and Retail Shares Show Mixed Performance
US Signals Openness to New Trade Deal as Brazil Shows Willingness, Says USTR Greer
Oil Prices Rebound in Asia as Venezuela Sanctions Risks Offset Ukraine Peace Hopes
Australia’s Labour Market Weakens as November Employment Drops Sharply
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal
Ireland Limits Planned Trade Ban on Israeli Settlements to Goods Only
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade
Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 



