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Japan Capital Expenditure Fall Even as Earnings Improve due to Weak Yen

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.

via CNBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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