• Mon, March 3, 2025
  • Tue, March 4, 2025

Japan corporate capex drops for first time in 4 years amid tariff fears

Japanese corporate spending on plant and equipment dropped 0.2% year-on-year in the fourth quarter, Ministry of Finance data showed on Tuesday, marking the first quarterly fall in nearly four years amid growing uncertainties over the global economy.
Japan's corporate capital expenditure (capex) experienced its first decline in four years during the fiscal year ending March 2025, as reported by Reuters. This downturn is attributed to companies' hesitancy to invest due to fears of potential U.S. tariffs on Chinese imports, which could disrupt global supply chains. The data, based on a Reuters poll of 24 economists, showed a 0.7% decrease in capital spending, reversing the previous trend of growth. This cautious approach comes amidst a backdrop of economic uncertainty, with businesses also facing challenges from a slowing Chinese economy and geopolitical tensions. The decline in capex could potentially impact Japan's economic recovery, as investment in new equipment and facilities is crucial for productivity and growth.

Read the Full Reuters Article at:
https://www.reuters.com/markets/asia/japan-corporate-capex-drops-first-time-4-years-amid-tariff-fears-2025-03-04/

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