Japan’s large companies have raised their capital expenditure plans for fiscal year 2026. According to the Bank of Japan’s September business survey, cited by Asia Daily based on a Nikkei report, planned investment across all sectors is expected to increase 7.6 percent year over year, compared with the 6.8 percent projected in June.
In the manufacturing sector, planned growth stands at 8.3 percent, 0.7 percentage point higher than in the previous survey. The source attributes the revision to continued investment aimed at expanding production capacity tied to artificial intelligence. These are corporate plans, however, rather than investments already carried out.
Rising construction costs are also pushing up budgeted spending. In addition, projected growth for this fiscal year remains below the 8.4 percent recorded at the same point a year earlier, according to the published information.
Demand linked to artificial intelligence and semiconductors has also improved large manufacturers’ assessment of business conditions. The sector’s business conditions index stood at 24 points in September, up two points from June and its highest level since March 2018. By contrast, the indicator for large nonmanufacturing companies fell two points to 35, amid rising prices and weakening demand.
