Japan Capital Spending Rises 1.6% as Technology Investment Supports Growth

Tokyo, Japan, 1 September 2026 – Japanese corporate capital expenditure rose in the April-to-June quarter, supporting domestic demand and strengthening the case for continued investment-led productivity growth. Spending on plant and equipment increased 1.6% from a year earlier and 1.5% on a seasonally adjusted quarterly basis. Corporate sales rose 5.9% year on year, while recurring profit increased 24.6%. The capital-expenditure data will feed into revised gross domestic product figures due on 8 September.

Preliminary estimates showed annualised economic growth of 1.1% in the quarter, slowing from 1.9% previously. Companies continue to invest in information technology, automation, artificial intelligence, semiconductors, advanced manufacturing and energy infrastructure as Japan addresses labour shortages and seeks higher productivity. The figures should be considered within the broader setting of Japanese investment and monetary policy, where short-term market reactions can differ from the longer-term economic effect.