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Firms’ planned capital spending in FY21 will increase 12% from a year earlier: survey

  • August 6, 2021
  • , Nikkei , p. 5
  • JMH Translation

According to survey results announced by the Development Bank of Japan on Aug. 5, Japanese businesses are planning to invest 17.9375 trillion yen in plant and equipment during fiscal 2021, an increase of 12.6% from the actual amount in fiscal 2020. The increase is the largest since fiscal 2018. While capital spending by the manufacturing sector is returning to a pre-pandemic level, spending by the non-manufacturing sector, which includes transportation and services, is forecast to remain sluggish. A K-shaped recovery is becoming conspicuous.


The survey targeted companies with a capital of 1 billion yen or larger at the end of June. Of 3,022 firms, 60% responded.


The manufacturing industry plans to invest 6.2255 trillion yen, up 18.6% from a year earlier. In fiscal 2018, its planned capital spending rose 27% on the year. On the other hand, the non-manufacturing industry plans to spend 11.712 trillion yen. This is projected to be a year-on-year increase of 9.7%. (Abridged)

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