Economics
Japan’s Economy Rebounds as Business Spends on Labor-Saving Tech
- Private consumption also rose, but more strength is needed
- Corporate investment is double level forecast by economists
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Capital investment drove a strong rebound in Japan’s economy in the second quarter, as companies turned to technology to cope with a labor shortage.
Signs that domestic demand is beginning to take over as a source of growth will be welcome at the Bank of Japan, which is struggling to hit its inflation target of 2 percent. It also helps bolster the economy before a hit next year when the Abe government is scheduled to hike the sales tax.