Major Japan Firms' Planned Capex Up 19.7 Pct in FY 2026

Tokyo, Aug. 4 (Jiji Press)--Planned domestic capital investment by major Japanese companies in fiscal 2026 is up 19.7 pct compared with the previous year's actual spending, a survey by the Development Bank of Japan showed Tuesday.

The increase comes as many businesses plan to boost spending related to semiconductors and artificial intelligence despite growing uncertainties in the Middle East.

Nonmanufacturers plan to increase capital spending by 22.9 pct in fiscal 2026, which ends in March next year, doubling an 11.3 pct planned increase shown in the DBJ survey the previous year.

Expenditures by electric power companies are projected to climb 53.5 pct amid moves to meet rising electricity demand driven by the spread of AI and data centers, with funds earmarked for power grids and nuclear power-related facilities.

Spending in the services sector is forecast to rise 55.2 pct, reflecting robust investment in hotels and "ryokan" Japanese-style inns amid an increasing number of tourists.

[Copyright The Jiji Press, Ltd.]