Japan's largest companies raised capital spending in the final quarter of last year, signaling stronger corporate sentiment. The Finance Ministry reported a 4% rise in spending on goods excluding software compared to the previous quarter. Prime Minister Sanae Takaichi is pushing for more investment in strategic sectors.
Japan's major companies boosted capital spending in the October-to-December quarter of 2025, pointing to improved corporate confidence. According to the Finance Ministry's report on March 3, 2026, outlays on goods excluding software climbed 4% from the prior quarter, following flat spending in the summer period.
The preliminary gross domestic product report for the fourth quarter showed corporate investment growing at a more modest 0.2% pace. Non-manufacturers drove the increase with a 6.5% rise, while manufacturers slightly reduced their spending compared to the previous period.
This uptick comes as Prime Minister Sanae Takaichi promotes investments in strategic sectors. Her push aims to bolster key areas of the economy, potentially supporting broader recovery trends, though further data will clarify the full impact.
