Japanese Business Investment Up in Q1 2019

According to data released by Ministry of Finance, business investment in Japan has been on the rise in Q1 2019. Capital expenditure rose by 6.1% in Q1 2019 when compared with Q1 2018 and up 5.7% since Q4 2018.

Chemicals, production machinery and leasing of goods were the key sectors that drove this gain. However, looking at the data, some economists expect a downward revision in Q1 2019 GDP growth which is due to be released on June 10. According to preliminary estimates, the GDP growth in Q1 2019 is expected to be 2.1% for this period over falling imports vis-à-vis exports.

Corporate recurring profits during Q1 2019 have also increased by 10.3% YoY, beating the previous quarter when they declined 7.0%. Corporate sales have also been up 3% YoY during this period, for a tenth consecutive quarter.

If the GDP figures are revised downward, there is a high likelihood that PM Shinzo Abe could delay the proposed sales tax hike due to come into effect from October 2019.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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