FX.co ★ Japan Q2 Capital Spending Above Expectations

In the second quarter of 2025, Japanese companies increased their capital spending on plant and equipment by 7.6%, up from 6.4% in the previous quarter and exceeding market expectations of 6.2%. This growth was widespread across both manufacturing and non-manufacturing sectors. Investment in the manufacturing sector jumped by an impressive 16.4%, fueled by significant spending in key industries. Meanwhile, the non-manufacturing sector registered a more modest increase of 3%. Among various industries, petroleum and coal products saw a remarkable increase of 49.1%, followed by transportation equipment at 43.4%, food at 38.2%, iron and steel at 37.2%, and production machinery at 35.8%. This robust level of capital investment highlights a renewal in corporate confidence and indicates a stronger boost to Japan's broader economic recovery in the upcoming months.