MNI BRIEF: Japan Q1 Capex Down Q/Q; GDP Seen Revised Lower
Combined capital investment by non-financial Japanese companies excluding software fell 0.5% q/q in Q1, decelerating from 8.2% in Q4 2023, a quarterly survey released by the Ministry of Finance showed on Monday.
The MOF survey, based on the demand side, is the key to calculating Q1 GDP revisions due June 10 and indicated capex will be revised down from preliminary estimate of -0.8%, based solely on supply side data.
Based on the MOF data on capex and inventories, the government is likely to revise down from its estimate of Q1 real GDP from the preliminary -0.5% q/q, or an annualised -2.0%.
Combined capital investment by non-financial companies including software fell 4.2% q/q in Q1 after rising 10.7% in Q4.
On a year-on-year basis, capex including software rose 6.8% in Q1, slowing from +16.4% in Q4.