Japan Business Investment in Weakest Patch Since 2011 Earthquake
- Companies pull back on spending plans despite soaring profits
- Credit Suisse says capex numbers could be revised lower still
Japan Needs 'Aggressive' Structural Reforms: Boubouras
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Despite historically high profits, Japanese business investment has dropped for the past two quarters, marking the weakest point since the first half of 2011 when corporate planning was thrown into chaos by the nation’s strongest earthquake on record.
Seasonally adjusted non-residential business investment contracted by 1.0 percent in the third quarter after shrinking by 0.9 percent in the previous three months, according to data from Japan’s gross domestic report released on Monday. Adjusted for price changes, it was the worst back-to-back quarterly performance since early 2013.