Japanese Companies Cut At Home Investment

Japanese companies cut investment in the nine months through December, even as cash on hand soars and profits are forecast to hit a record.

Capital spending dropped 0.1 percent in October-December, the third straight quarter of declines, data showed. In the same period, cash on hand at Japanese companies listed on the Nikkei 225 rose to almost 168 trillion yen ($1.4 trillion). That was double the level at the end of March 2013, three months after Prime Minister Shinzo Abe took office.

At the same time, spending overseas has continued to be strong, with net foreign domestic investment down only 5 percent last year from its 2013 peak, in data going back to 1996.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell