2 in 5 Japan firms plan increased capital spending

Tokyo

TWO in five Japanese firms plan to boost capital spending this business year, and more than a third of those say it is because of rising demand, a Reuters poll showed, pointing to a pick-up in confidence about the economy.

But tempering that upbeat view was a warning from about one-quarter of respondents that their sales are so far undershooting their business plans for the year that started in April. In contrast, just one-eighth of respondents said they were ahead of plan.

The latest Reuters Corporate Survey could offer some relief to Japanese policymakers who are anxious for companies to spend their cash hoards on plant and equipment, rather than hold them in reserve as they fret over Greek debt and swingy Chin…