Japan’s capital expenditure surged remarkably by of 16.4% yoy in Q4, significantly outperforming expectations of 2.9% yoy increase. This marked the eleventh consecutive quarter of business investment growth, highlighting the robust confidence among Japanese corporations in the country’s economic prospects.
The impressive figures come as a beacon of optimism, especially considering they will contribute to the revision of Q4’s GDP data, which initially indicated unexpected contraction of -0.4% qoq. With this revision, it’s anticipated that Japan may have narrowly avoided slipping into a technical recession.
The investment growth was particularly pronounced among manufacturers, who increased their spending by 20.6% yoy. This 11th consecutive quarter of expansion was predominantly driven by the information and communication machinery and transport equipment sectors.
Non-manufacturers also contributed with 14.2% yoy increase in investment, marking the sixth consecutive quarter of growth. The telecommunication, transportation, and postal service sectors were notably instrumental in this rise.
A Finance Ministry official commented on the data, stating, “The results reflect our view that the economy is recovering moderately. But we will need to monitor the impact of slowing overseas economies and inflation on corporate activity.”
Swiss CPI rises 0.6% mom in Feb, slows to 1.2% yoy
Swiss CPI rose 0.6% mom in February, above expectation of 0.5% mom. CPI core (excluding fresh and seasonal products, energy and fuel) rose 0.7% mom. Domestic products prices rose 0.5% mom while imported products prices rose 1.0% mom.
For the year, CPI slowed from 1.3% yoy to 1.2% yoy, above expectation of 1.1% yoy. CPI core slowed from 1.2% yoy to 1.1% yoy. Domestic product prices growth slowed from 2.0% yoy to 1.9% yoy. Imported products prices growth improved from -0.9% yoy to -1.0% yoy.
Full Swiss CPI release here.