Japan Q2 Capital Spending Above Expectations
2025-09-01 00:12
By
Jam Kaimo Samonte
1 min. read
Japanese companies increased capital spending on plant and equipment by 7.6% in the second quarter of 2025, accelerating from 6.4% in the previous quarter and surpassing market expectations of 6.2%.
The growth was broad-based, with both manufacturing and non-manufacturing sectors contributing to the expansion.
Investment in the manufacturing sector surged 16.4%, driven by strong spending across key industries, while the non-manufacturing sector posted a more modest 3% rise.
Among individual industries, the largest gains were recorded in petroleum and coal products (49.1%), transportation equipment (43.4%), food (38.2%), iron and steel (37.2%), and production machinery (35.8%).
The robust pace of capital investment underscores renewed corporate confidence and suggests stronger support for Japan’s broader economic recovery momentum in the months ahead.