TOKYO - Japanese business investment rose in January-March, continuing the run of growth seen over the past two years although signs of slowing momentum have raised concerns about the strength of business activity amid mounting global economic risks.
Excluding software, capital expenditure rose 1.1% in January-March from the previous quarter on a seasonally-adjusted basis, up for a second straight quarter. But it slowed from the previous quarter’s 3.9% gain. “Inventory and public works will likely be revised down while capex will be largely unchanged,” said Toru Suehiro, senior market economist at Mizuho Securities.
However, business investment has recently shown some signs of slowdown as the intensifying Sino-U.S. trade war and slowing external demand hit global trade and supply chains, hurting Japan’s export-reliant economy.
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