Japanese companies to slash capital expenditure by 6.8% this fiscal year

Japanese companies plan to slash capital expenditure by 6.8% 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% 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% compared with a year earlier, while non-manufacturers plan a 8.1% reduction, the survey showed.