Japan Investment Surge, Record ¥15.4 Trillion Spent Amid Economic Push

Japan’s business spending grew by 2.9% in the third quarter, data shows factory and equipment investment rose 6.5% year-on-year, reaching a record ¥15.4 trillion ($97.9 billion). The economy grew at a preliminary 0.2% annual rate. Companies are moving quickly to replace old equipment and fight labor shortages as the nation moves away from falling prices. Additionally, corporate sales increased by 0.7%, while recurring profits climbed 4.7%. The government plans to further boost spending through subsidies and tax credits to ensure economic security. Experts predict these measures will lift future investment by 1%, despite rising interest rates. While Mizuho Research forecasts 2.7% growth for fiscal 2026, some analysts remain cautious. They warn that global risks, including Middle East tensions and tariff issues, could dampen the willingness of firms to spend. However, the current momentum suggests that businesses are using their strong profits to upgrade technology.