TOKYO – Japanese companies raised spending on plants and equipment in April-June but the pace of annual gains slowed to the lowest in five quarters, the Ministry of Finance (MOF) said on Friday, reflecting global recession worries amid China’s slowing growth.
Fears of a global downturn are clouding the outlook for export-reliant Japan, the world’s third-largest economy, as sharp interest rate hikes in the U.S. and Europe and surging inflation threaten to stymie demand. China, Japan’s largest trade partner, is battling a deepening property crisis as well.
Capital expenditures rose 4.5 percent in the second quarter from a year earlier, the slowest growth since the start…
Keep on reading: Japan capex growth slows amid fears of China’s slowdown, tame consumption
