MNI 5 THINGS: Japan Q4 Capex Up, GDP Seen Revised Higher

--Japan Q4 Non-Financial Firm Capex +5.7% Y/Y; Q3 +4.5% 

--Japan Q4 Capex (Ex-Software) +5.5% Y/Y; Q3 +2.5% 

--Japan Q4 Capex (Ex-Software) S/A +3.3% Q/Q; Q3 -4.4% 

--Japan Q4 Manufacturer Capex +10.9% Y/Y Vs Q3 +5.1% 

--Japan Q4 Non-Manufacturer Capex +2.7% Y/Y Vs Q3 +4.2% 

--Japan Q4 Non-Financial Current Profit -7.0% Y/Y Q3 +2.2%

     TOKYO (MNI) - Combined capital investment by non-financial Japanese

companies rose 5.7% on year in the October-December quarter, after rising 4.5%

in July-September, the results of a quarterly survey of capital investment and

corporate profits by major companies released by the Ministry of Finance Friday

showed.

     The results are likely to see the government revising up its estimate of Q4

GDP in data due on Friday, March 8.

     The key points from the Ministry of Finance quarterly Financial Statements

Statistics of Corporations by Industry survey:

     --Capital investment by non-financial Japanese firms rose 5.7% on year in

the October-December period, posting the ninth straight q/q rise, and the pace

of increase accelerated from 4.5% in July-September.

     --Investment in equipment remained solid on the back of the continued labor

shortages in Japan. The impact of the U.S.-China trade dispute on Japan's

economy limited, although some firms were cautious about implementing capex amid

uncertainties over global demand.

     --Capex in the manufacturing sector rose 10.9% on year in Q4 vs +5.1% in

Q3, while that in the non-manufacturing sector gained 2.7% vs. +4.2%.

     --Capex excluding software gained 5.5% on year in Q4, accelerating from

+2.5% in Q3. Combined capital outlays (excluding software) rose a seasonally

adjusted 3.3% in Q4, marking the first q/q rise in two quarters after falling a

revised 4.4% in Q3.

     --The MOF survey, based on the demand side, is the key to calculating

revisions to Q4 GDP due out on March 8. Capex in preliminary GDP, based solely

on supply side data, rose 2.4% on quarter and pushed total domestic output

modestly higher (although by a rounded 0.4 percentage point).

     --Based on the MOF data on capex and inventories, the government is likely

to revise up its estimate of Q4 real GDP growth from a preliminary +0.3% on

quarter, or an annualized +1.4%. GDP growth in the fourth quarter followed a

contraction of 0.7% on quarter, or an annualized -2.6% in Q3.

     --Combined non-financial current profits fell 7.0% on year in Q4, following

a 2.2% gain in Q3. Current profits at manufacturers fell 10.6% on year in Q4 vs

-1.6% in Q3, while those at non-manufacturers fell 4.9% vs. +4.6% in Q3.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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