Corporate investment in Japan flatlined at 0.0% year-over-year in Q1, well below the 4.0% consensus estimate.
Japan’s capital spending held steady at 0.0% year-over-year in the first quarter, falling short of the 4.0% growth forecast and marking a sharp slowdown from the prior quarter’s 6.5% rise. Excluding software, investment declined 1.4%, missing expectations of a 5.4% increase and reversing a 7.3% gain in the previous period.
Company sales rose 1.1% year-over-year, improving from 0.7% in the prior quarter, while profits surged 14.6%, exceeding the 5.3% estimate and accelerating from 4.7% growth previously. The mixed data highlights weak investment amid resilient earnings.
Markets are assessing the implications for Japan’s economic outlook and potential policy responses.