Japanese businesses have pared back their capital investment as the tariff campaign of the administration of U.S. President Donald Trump has intensified.
Capital expenditure on goods excluding software gained for a fifth consecutive quarter in the three months through June, but slowed to a pace of 0.2% compared to the previous period, the Finance Ministry reported Monday. That compares with a 1.3% gain in corporate investment reported in the preliminary reading of Japan’s gross domestic product. The latest reading will be factored into a revised GDP report for the period ended in June due on Sept. 8.
Compared with a year ago the figures looked stronger, with investment including software rising 7.6%, compared with the median estimate of a 6.1% gain. Profits increased 0.2% from a year earlier while sales gained 0.8%.
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