Japan Q2 Capital Spending Above Expectations

2025-09-01 00:12 By Jam Kaimo Samonte 1 min. read

Japanese companies increased capital spending on plant and equipment by 7.6% in the second quarter of 2025, accelerating from 6.4% in the previous quarter and surpassing market expectations of 6.2%.

The growth was broad-based, with both manufacturing and non-manufacturing sectors contributing to the expansion.

Investment in the manufacturing sector surged 16.4%, driven by strong spending across key industries, while the non-manufacturing sector posted a more modest 3% rise.

Among individual industries, the largest gains were recorded in petroleum and coal products (49.1%), transportation equipment (43.4%), food (38.2%), iron and steel (37.2%), and production machinery (35.8%).

The robust pace of capital investment underscores renewed corporate confidence and suggests stronger support for Japan’s broader economic recovery momentum in the months ahead.



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Japanese companies increased capital spending on plant and equipment by 7.6% in the second quarter of 2025, accelerating from 6.4% in the previous quarter and surpassing market expectations of 6.2%. The growth was broad-based, with both manufacturing and non-manufacturing sectors contributing to the expansion. Investment in the manufacturing sector surged 16.4%, driven by strong spending across key industries, while the non-manufacturing sector posted a more modest 3% rise. Among individual industries, the largest gains were recorded in petroleum and coal products (49.1%), transportation equipment (43.4%), food (38.2%), iron and steel (37.2%), and production machinery (35.8%). The robust pace of capital investment underscores renewed corporate confidence and suggests stronger support for Japan’s broader economic recovery momentum in the months ahead.
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