Yamato: Capital expenditure is expected to lead Japan's economic growth

Yutaro Suzuki, an economist at Yamato Securities, stated that despite the ongoing uncertainty in the Middle East, the Bank of Japan's short-term survey shows that Japanese companies' capital expenditure plans are expanding in line with typical historical trends. He mentioned that in the face of severe domestic labor shortages, strong demand to maintain aging facilities and achieve operational automation is driving investment intentions with high resilience. "Although private consumption remains weak, capital expenditure may become the main engine of the Japanese economy," Suzuki added. The survey shows that large corporations plan to increase capital spending by 11.5% in this fiscal year.