Japan Capital Expenditure Fall Even as Earnings Improve due to Weak Yen

While growth in the world’s third largest economy, Japan, surpassed expectations in the first quarter, expanding at its fastest pace in a year, an important pillar of growth was missing: revival in capital spending.

Japan’s economy grew 0.9 percent in the first quarter of 2013 from the previous three months – above forecasts for 0.7 percent growth – helped by robust consumption growth and a pick-up in exports.

However, the improvement in export demand has failed to translate into investment, with capital expenditure (capex) falling 0.7 percent – the fifth straight quarter of declines – compared with estimates for a rise of 0.7 percent.

via CNBC

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