Capital spending by Japanese companies fell to the lowest level, posting the largest drop in a decade in the April-June quarter as the coronavirus pandemic clouded the business outlook.
The government said that the economy would unlikely rebound soon from the coronavirus-induced slump. From April to June this year, capital spending in Japan shed 11.3% year-on-year as the pandemic hit investments in the manufacturing as well as the services sector.
In August, production activity in the Japanese manufacturing sector steadily declined at the slowest pace in the last six months. Yet, there is a silver lining in this grim data. Thanks to the slower drop in the manufacturing sector, Japan's government decided not to resort to drastic stimulus measures.
