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Capital Expenditures in Japan on the Decline

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Japanese businesses appear to have downsized their level of investment. A report out this morning from the Japanese Ministry of Finance found that capital expenditures by private businesses declined 7.8% in the second quarter.

The report is presented in an annualized format, but covers an entire quarter. There was an expectation of 1.1% growth in this figure, making the actual results all the more detrimental. This decline poses an ominous challenge to the Japanese economy as business capital expenditures represent a sizeable portion of domestic investment. The reverberations may put a significant dent in Japan's GDP growth over a longer period.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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