Japan's Economy Shows Strength Despite Global Challenges

Japan's economy is showing signs of resilience. In the third quarter of the year, companies in Japan spent more on buildings and equipment. This spending went up by 2. 9% compared to the same time last year. This is good news because it shows that the economy is still strong, even with challenges like U. S. tariffs. The data comes from the Ministry of Finance. It will help figure out the country's GDP for the third quarter. This GDP report is expected on December 8. The data might also support the idea of raising interest rates by the central bank. Earlier data showed that the economy shrank by 1. 8% in the third quarter. This was because exports dropped due to U. S. tariffs. It was the first time the economy shrank in six quarters. Capital spending in the third quarter was lower than the previous quarter. It went down by 1. 4% on a seasonally adjusted basis. But, corporate sales went up by 0. 5%, and recurring profit increased by 19. 7%. Companies in Japan have been investing a lot in technology. This is to deal with a shortage of workers. The country has an aging population, so this investment is crucial. Analysts say that this strong capital spending will help the economy. This is important because inflation is putting pressure on consumer spending. Exports are also facing challenges due to U. S. tariffs. The government is also trying to boost investment. They have a stimulus package worth 21. 3 trillion yen. This is the largest since the COVID-19 pandemic.