Japanese companies cut spending on plants and equipment for the fourth consecutive quarter in January-March, as the economy struggles to shake off the drag from the coronavirus pandemic.
A slow recovery of firms' propensity to spend is likely to worry policymakers hoping strong domestic demand can help make the country's economic recovery more sustainable.
The Finance Ministry data out on Tuesday showed capital expenditure in the first quarter fell 7.8% from the same period last year, pulled down by weaker investments in transportation equipment, electrical machinery and real estate.