Japan Firms Pare Growth in Capital Spending as US Tariffs Hit

Japan’s businesses largely reined in growth in capital spending, taking a more cautious view of the outlook as the Trump administration’s tariff campaign intensified.

Capital expenditure on goods excluding software gained for a fifth consecutive quarter in the three months through June, but the pace of increase decelerated sharply to 0.2% from 2% in the previous period, the Finance Ministry reported Monday. That compares with a 1.3% gain in corporate investment reported in the preliminary reading of Japan’s gross domestic product. The latest reading will be factored into a revised GDP report for the period ended in June due on Sept. 8.