Capital Spending Still Missing in Japan’s Growth

While growth in the world’s third largest economy, Japan, surpassed expectations in the first quarter, expanding at its fastest pace in a year, an important pillar of growth was missing: revival in capital spending.

Japan’s economy grew 0.9 percent in the first quarter of 2013 from the previous three months – above forecasts for 0.7 percent growth – helped by robust consumption growth and a pick-up in exports.

However, the improvement in export demand has failed to translate into investment, with capital expenditure (capex) falling 0.7 percent – the fifth straight quarter of declines – compared with estimates for a rise of 0.7 percent.


This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.