|
TOKYO - JAPANESE companies are slowing down their capital investment in the face of a stronger yen, rising material costs and concerns about the United States economy, a report said.
They plan to increase spending in plant and equipment by 3.7 per cent in the year to March 2009, representing the sixth straight year-on-year gain but the smallest rise in five years, the leading business daily Nikkei said on Sunday.
The daily was citing a survey of 1,523 firms, mostly big companies.
'The overall trend is probably weaker than the result shown here because smaller firms are generally more cautious about capital spending,' it said.
Among the firms, manufacturing companies plan to boost investment by a solid 6.4 per cent while non-manufacturers intend to cut outlays by 0.4 per cent, the first decrease in five years, the daily said.
Private-sector capital spending has been one of the driving forces behind the growth of the Japanese economy.
Among the manufacturers, automobile and electronics firms are seeking to boost capital investment by 6.8 per cent and 2.5 per cent respectively, topping the growth rates seen in the year to March 2008 to meet burgeoning demand from emerging countries, among other reasons, the report said.
Steelmakers are also bullish as they plan to spend 10.2 per cent more on plant and equipment.
Soaring fuel and materials prices, however, hit spending plans hard at some firms, with textile companies and paper and pulp manufacturers expecting to reduce capital investment, the report said. -- AFP
 |
Is this article useful to you?
|
|
|
|
|
|
| 
