The surge in firms’ capital spendings plan for the fiscal year that started in April to around a record high could be due to firms finally undertaking projects that have been held back by supply shortages. But it could also be a strategic shift away from complex cross-border supply chains towards more domestic production. While that would probably be good for Japan’s economy, it would bode ill for corporate profitability if firms traded off efficiency for supply chain security.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services