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2026.08.3123:50:00UTC+00Japan’s Capital Spending Rebounds 1.6% YoY in Q2 2026 After Flat Start to the Year

Japan’s capital spending picked up in the second quarter of 2026, rising 1.6% year-over-year after stagnating at 0.0% in the first quarter, according to data updated on 31 August 2026. The figures, measured on a year-over-year basis, signal a tentative improvement in corporate investment momentum following a flat start to the year.

The latest reading compares the change in capital expenditure in the second quarter of 2026 with the same period a year earlier, while the previous figure did the same for the first quarter. The shift from no growth in Q1 to positive growth in Q2 suggests that Japanese firms have started to modestly increase their investment outlays, potentially reflecting greater confidence in the business outlook.

While the 1.6% gain is not a surge, the move into positive territory is a notable change from the first quarter’s stagnation. Market participants will be watching upcoming quarters closely to see whether this rebound in capital spending can be sustained and translate into stronger support for Japan’s broader economic performance.

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