In a potential blow for Prime Minister Shinzo Abe's economic agenda, most Japanese companies have put capital investment plans on hold as a result of the U.S.-China trade war and other global risks, a survey has found.
Delaying improvements in factories, equipment and technology could be a precursor to cutting investments altogether at a time when profits appear to be levelling off and the outlook for consumption — the bulk of economic activity — is dimming.
One firm in five has already cut its initial spending plans at home and overseas for the business year to March, the survey by Reuters found, while two-thirds say they're sticking to their plans.