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.


China Home Prices Rise in January as Government Signals Stronger Support for Property Market
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action
South Korea Factory Activity Hits 18-Month High as Export Demand Surges
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 



