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Japan's Corporate Spending Rises Amid Economic Uncertainties

9/2/2025

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Summary

Story summary

Japanese corporate spending on plant and equipment increased by 7.6% in April-June, reflecting strong domestic demand.
Manufacturers' recurring profits declined by 11.5%, especially in the automobile sector, raising investment concerns.
Japan's economy grew by 1.0% in the second quarter, but forecasts indicate possible contraction ahead.
A trade agreement could lower U.S. tariffs on Japanese automobiles, though implementation is uncertain.

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Story summary

Japanese corporate spending on plant and equipment increased by 7.6% in April-June, reflecting strong domestic demand.
Manufacturers' recurring profits declined by 11.5%, especially in the automobile sector, raising investment concerns.
Japan's economy grew by 1.0% in the second quarter, but forecasts indicate possible contraction ahead.
A trade agreement could lower U.S. tariffs on Japanese automobiles, though implementation is uncertain.