Major Japan Firms’ Planned Capex Up 19.7 Pct in FY 2026

Tokyo, Aug. 4 (Jiji Press)–Planned domestic capital investment by major Japanese companies in fiscal 2026 is up 19.7 pct compared with the previous year’s actual spending, a survey by the Development Bank of Japan showed Tuesday. The increase comes as many businesses plan to boost spending related to semiconductors and artificial intelligence despite growing uncertainties in the Middle East. Nonmanufacturers plan to increase capital spending by 22.9 pct in fiscal 2026, which ends in March next year, doubling an 11.3 pct planned increase shown in the DBJ survey the previous year. Expenditures by electric power companies are projected to climb 53.5 pct amid moves to meet rising electricity demand driven by the spread of AI and data centers, with funds earmarked for power grids and nuclear power-related facilities. Spending in the services sector is forecast to rise 55.2 pct, reflecting robust investment in hotels and “ryokan” Japanese-style inns amid an increasing number of tourists. Meanwhile, manufacturers plan to increase capital spending by 13.2 pct. Electric machinery producers are expected to boost their capital investment by 18.2 pct, mainly for advanced semiconductors and electronic components. Investment by chemical makers and nonferrous metal firms is estimated to rise 11.6 pct and 11.3 pct, respectively. In previous years, actual spending tended to be smaller than planned levels. In fiscal 2025, actual spending rose 7.3 pct, against the planned increase of 14.3 pct shown in the DBJ survey for the year. Conducted in June, the latest survey covered 2,756 companies with a capital of 1 billion yen or more. Valid responses came from 1,598 firms. END [Copyright The Jiji Press, Ltd.]