Capital spending looks set for recovery

A Japanese government survey suggests many large companies are ready to start investing in production and sales facilities again. This comes after businesses shied away from capital investments for more than a year.

A quarterly survey by the Cabinet Office and the Finance Ministry shows that more large firms say their facilities were "insufficient" than say they were "excessive."

The latest results cover the period from July to September. It is the first time since Japan declared a coronavirus state of emergency in April last year that large firms are more bullish about their capital investments and feel the need to retool plants and other facilities.

The survey shows that major companies plan to spend over 10 percent more on capital investments in the current fiscal year than in the previous one.

Large and smaller companies combined foresee an increase of more than 6 percent, on average.

The Finance Ministry says the pandemic has kept a lid on businesses from spending more, but spending is now set to pick up again.