Japan’s corporate capex raises economic recovery hopes

“The capex data suggested there will be little change in revised GDP data. The economy was stalling as global cyclical demand went down,” said Yoshimasa Maruyama, chief economist at SMBC Nikko Securities. — Reuters

TOKYO: Japanese companies raised spending on plant and equipment for a seventh straight quarter through to the end of 2022, data released yesterday showed, offering relief to policymakers counting on a private demand-led recovery from Covid-19.

Finance Ministry data showed Japanese firms raised capital expenditure (capex) in October to December by 7.7% from the same period a year earlier, slowing from a 9.8% gain in the third quarter of 2022.