Japan's capital spending set for biggest-ever surge

Capital spending by Japanese companies is set to jump by the most ever in the current business year, as the economy recovers from the pandemic.

A quarterly survey by the Cabinet Office and the Finance Ministry shows capital spending growing 16 percent in fiscal 2022, which began in April.

That is 7.8 percentage points higher than projected three months ago, and the biggest rise since the survey began in 2004.

Gains are seen in both the manufacturing and non-manufacturing sectors. The auto industry is expected to spend 29.8 percent more, as it ramps up investments in electric vehicle production.

Retailers are likely to spend 20.3 percent more, as many open new stores.

But officials are wary about surging resources prices. They say they are keeping a close eye on business trends.