According to Jin10 data, Japanese companies increased their investments in the third quarter, indicating stronger-than-expected business confidence, supporting the view that the Bank of Japan may raise interest rates ahead of schedule. In the third quarter, capital expenditures on goods excluding software rose by 0.8% from the previous quarter, with the manufacturing sector showing the largest increase.
Compared to the same period last year, expenditures excluding software increased by 9.5%, exceeding expectations, while investments including software grew by 8.1%. This data will be included in the revised GDP figures to be released on December 9.
Shinichiro Kobayashi, chief economist at Mitsubishi UFJ Research and Consulting, stated that in light of recent price data, the Bank of Japan has the capacity to raise interest rates again in December, and is not expected to wait until next year.
