Japan firms plan to cut capex by 6.8% this fiscal year: survey

[BENGALURU] Japanese companies plan to slash capital expenditure by 6.8 per cent in the current fiscal year ending in March 2021, a quarterly survey by the Ministry of Finance showed on Friday.

The decline was bigger than a 4.4 per cent fall projected three months ago, suggesting that slumping profits from the coronavirus pandemic was denting corporate spending appetite.

Manufacturers expect to reduce capital spending by 4.5 per cent compared with a year earlier, while non-manufacturers plan a 8.1 per cent reduction, the survey showed.

REUTERS