Japan’s Capital Spending Surges Amid Trade Tensions
12
3
Japan’s corporate sector defied global trade headwinds with a 6.4% year-on-year increase in capital expenditure during Q1 2025, outpacing the 3.8% consensus forecast. The Ministry of Finance data reveals a dramatic reversal from Q4 2024’s 0.2% contraction, signaling renewed business confidence despite escalating US tariff pressures.
Steel and automotive exporters brace for impact as Washington’s punitive duties loom, with potential implementation as early as July absent trade negotiation breakthroughs. Yet domestic fundamentals remain robust - corporate sales grew 4.3% alongside 3.8% profit growth, creating a virtuous cycle of productivity-focused investment to address chronic labor shortages.
By:
Previous
Wamid and BMLL Partner to Bring Advanced Analytics to Saudi Market
Next
Mastering Futures Margin Calls: 7 Essential Strategies to Protect Your Capital
