Corporate Spending Growth in Japan to Mark 52-Year High

Economy

Tokyo, Aug. 4 (Jiji Press)--Corporate capital expenditures in Japan by major companies are expected to grow 26.8 pct in fiscal 2022 from the previous year after delays in spending due to the COVID-19 pandemic, the Development Bank of Japan said in a survey report Thursday.

This marks the fastest pace of growth in spending plans since a 27.6 pct increase in fiscal 1970, which ended in March 1971, when the country was in a period of high economic growth, the government-backed lender said.

Spending by manufacturers is expected to climb 30.7 pct, led by increases in expenditures related to electric vehicles and semiconductors.

Nonmanufacturers' spending is projected to gain 24.8 pct. Notable spending plans include a series of real estate development projects in central Tokyo and expenditures by railway firms to make train stations barrier-free.

Investments related to carbon reduction account for 13.1 pct of total spending plans.

[Copyright The Jiji Press, Ltd.]

Jiji Press