Economic news

Japan’s stronger Q3 corporate capex points to solid domestic demand

2024.12.01 19:51

By Makiko Yamazaki

TOKYO (Reuters) – Japanese corporate spending on plant and equipment rose 8.1% year-on-year in the third quarter, Ministry of Finance data showed on Monday, signalling that solid domestic demand was underpinning the country’s fragile economic recovery.

The solid expenditure data, which will be used to calculate revised gross domestic product figures due on Dec. 9, could support the case for the central bank to raise interest rates further.

Preliminary data last month showed Japan’s economy expanded by an annualised 0.9% in the third quarter, slowing from the previous three months.

The third-quarter capital spending figures compared with the previous quarter’s 7.4% gain. It grew 1.7% on a seasonally adjusted quarterly basis.

Monday’s capex data also showed corporate sales rose 2.6% in the third quarter from a year earlier, while recurring profits decreased 3.3%.

Capital expenditure is one of the key gauges of domestic demand-led economic growth.

Business spending remained generally solid in recent years due to strong appetite for investment in information technology.

© Reuters. FILE PHOTO: Pedestrians walk past an electronic board displaying various companies' share prices, at a business district in Tokyo, Japan, October 31, 2023. REUTERS/Kim Kyung-Hoon/File Photo

However, an unstable political situation at home and further weakness in China’s economy could lead Japanese firms to postpone capital investment decisions, economists said.

Moreover, U.S. President-elect Donald Trump has pledged tariffs on the nation’s three largest trading partners – Canada, Mexico and China, potentially affecting global supply chains in a wide range of industries.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 82,094.00 1.34%
ethereum
Ethereum (ETH) $ 1,897.15 1.45%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.30 2.81%
bnb
BNB (BNB) $ 583.64 1.30%
solana
Solana (SOL) $ 125.07 1.19%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.709404 1.72%
dogecoin
Dogecoin (DOGE) $ 0.169057 0.45%
tron
TRON (TRX) $ 0.225776 1.00%
staked-ether
Lido Staked Ether (STETH) $ 1,893.08 1.30%
pi-network
Pi Network (PI) $ 1.68 1.52%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,836.93 1.48%
leo-token
LEO Token (LEO) $ 9.72 0.30%
chainlink
Chainlink (LINK) $ 13.38 1.50%
stellar
Stellar (XLM) $ 0.27494 3.67%
usds
USDS (USDS) $ 1.00 0.01%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,265.71 1.22%
hedera-hashgraph
Hedera (HBAR) $ 0.190468 2.70%
avalanche-2
Avalanche (AVAX) $ 18.65 1.35%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 1.28%
the-open-network
Toncoin (TON) $ 2.80 3.85%
sui
Sui (SUI) $ 2.18 3.59%
litecoin
Litecoin (LTC) $ 89.08 0.54%
bitcoin-cash
Bitcoin Cash (BCH) $ 327.38 3.68%
mantra-dao
MANTRA (OM) $ 6.27 3.05%
polkadot
Polkadot (DOT) $ 4.04 2.19%
ethena-usde
Ethena USDe (USDE) $ 0.999974 0.04%
weth
WETH (WETH) $ 1,896.94 1.54%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999595 0.10%
bitget-token
Bitget Token (BGB) $ 4.20 0.41%
hyperliquid
Hyperliquid (HYPE) $ 13.04 2.56%
whitebit
WhiteBIT Coin (WBT) $ 28.16 1.52%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,013.66 1.18%
monero
Monero (XMR) $ 208.02 0.84%
uniswap
Uniswap (UNI) $ 5.91 2.21%
susds
sUSDS (SUSDS) $ 1.04 0.08%
dai
Dai (DAI) $ 0.999857 0.02%
near
NEAR Protocol (NEAR) $ 2.65 4.26%
aptos
Aptos (APT) $ 5.16 1.94%
pepe
Pepe (PEPE) $ 0.000007 0.76%
ethereum-classic
Ethereum Classic (ETC) $ 18.03 1.46%
ondo-finance
Ondo (ONDO) $ 0.843409 0.72%
internet-computer
Internet Computer (ICP) $ 5.50 0.43%
gatechain-token
Gate (GT) $ 20.59 1.63%
okb
OKB (OKB) $ 42.14 1.21%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 82,033.98 1.36%
aave
Aave (AAVE) $ 165.22 3.23%
mantle
Mantle (MNT) $ 0.725381 2.48%
official-trump
Official Trump (TRUMP) $ 11.67 8.82%