Japanese Firms Boost Capex in Sign of Confidence Holding Up

Published On Dec 1, 2024, 7:57 PM

Japanese companies have increased their capital expenditures in the last quarter, indicating strong corporate confidence. This rise in investments, especially among manufacturers, comes despite a decline in corporate profits. Analysts suggest that this trend may lead the Bank of Japan to consider increasing interest rates sooner than expected, potentially as early as December 19. Overall, the data points to a resilient domestic economy amidst rising inflation, with business investment showing unexpected strength despite recent profit declines.