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2026.03.0300:06:05UTC+00Japan Q4 Capital Spending Rises More than Estimated

Japanese companies increased capital spending by 6.5% in Q4 2025, accelerating sharply from 2.9% in the previous quarter and surpassing market expectations of 3.0%. This marked the fourth consecutive quarter of growth, underscoring strengthening corporate confidence.

Non-manufacturing investment rose markedly (10.1% vs. 3.9% in Q3), driven by a strong rebound in construction (14.9%) and further gains in real estate (40.7%), goods rental and leasing (26.0%), and services (2.5%).

By contrast, manufacturing investment was flat after a 1.4% increase in the previous quarter. Increases in food (13.6%), chemical products (18.7%), iron and steel (13.4%), and fabricated metal products (25.5%) were offset by declines in petroleum and coal (-14.9%), production machinery (-6.7%), and information and communications (-38.2%).

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