Japanese Companies Putting Off Capital Investment Plans: Reuters Poll

According to a recent Reuters survey, the ongoing US-China trade war has caused a majority of Japanese companies to hold off on new capital investment plans. Weakening demand on the back of global economic slowdown and the trade war are making companies in Japan hold off making significant expenses on factories, technologies and equipment.

Around 20% of the firms surveyed have downsized their plans for capital investment while around two-thirds of firms have no plans to increase investment in the fiscal year ending March 2020. Japan’s manufacturing sector has been severely affected by the trade tensions between US and China as China is one of its leading trade partners.

Factory output and exports have been declining over the past few months and business confidence in the manufacturing sector touched a six-and-half year low during September. The survey also reveals that around 56% of Japanese companies are putting off their investment projects on the face of weaker demand as profits fail to climb higher.

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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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