Japan Capex data for Q1, final: +0.1% y/y (preliminary was +4.3%)

Capital expenditure over the January to March period

Capital spending 0.1% y/y

• preliminary +4.3% y/y, prior -3.5%

Capital spending excl. software -1.4% y/y

• preliminary +3.5% y/y, prior -5.0%

Company profits -28.4% y/y

• preliminary -32.0% y/y, prior -4.6% y/y

Company sales -7.5% y/y

• preliminary -3.5% y/y vs. -6.4% y/y prior

With such an uncertain outlook it is little surprise capex is down. Mix in the collapse in profits indicated there also.

Lower capex investment is not a positive for businesses ahead, but they are in a tight spot now and for the immediate future.