TOKYO (MNI) – The Development Bank of Japan on Wednesday forecast
that combined investment in equipment by major firms in the domestic
market will rise 12.2% on year in fiscal 2012, highest since its +12.9%
projection for fiscal 2006.
This compares with the DBJ’s forecast for +7.3% for fiscal 2011
released about a year ago.
The actual capital investment in fiscal 2011 fell 2.1% on year,
posting the fourth straight yearly drop after -2.5% in fiscal 2010.
The bank forecast combined capex will fall 5.9% in fiscal 2013.
In fiscal 2012, manufacturers’ capital investment is expected to
rise 19.1%, compared with +8.6% for non-manufacturers, the bank said.
Carmakers will raise capex to meet growing demand for low-emission
vehicles while chemical firms plan to boost production capacity for
solar batteries, it said.
Among non-manufacturers, the transportation industry is expected to
enhance delivery systems and infrastructure while mobile phone carriers
are expanding relay stations for smartphone networks, said the DBJ.
Meanwhile, capital investment by Japanese firms in overseas markets
is forecast by the DBJ to rise 31.5% on year in fiscal 2012, with the
pace of growth decelerating from its fiscal 2011 projection for +49.2%
and the actual result of +42.2%
The bank releases its capital investment projections once a year by
surveying about 3,000 major firms capitalized at Y1 billion or above in
Japan.
tokyo@marketnews.com
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