2. Equipment Investments

Combined capital investment by Parent companies increased by 7.3% from the same quarter a year ago to 2.0785 trillion yen. Growth was posted in nine industries including Chemicals.

On the other hand, their direct overseas investment fell again following the preceding quarter, by 4.8% from the corresponding quarter a year ago to 282.5 billion yen. Declines were posted in six industries including Electrical Machinery.

Combined capital investment by Overseas subsidiaries decreased by 10.9% to 358.5 billion yen (2.8 billion US dollers). While ASEAN4 recorded the largest fall in the amount, North America saw the trend reversed to decline. The decline was recorded in nine industries including Chemicals.

Ratio of overseas capital investment (Note 4) stood at 17.2%, down 3.6 points from the same quarter a year ago.

The percentage of Parent companies with anticipated increase in capital investment in the 1998 April-June quarter fell in all industries except Precision Machinery, with the DI falling by 14.2 points from the preceding quarter (4.1 to -10.1).

The percentage of those anticipating growth in direct overseas investment also decreased in eight industries including Electrical Machinery, with the DI falling by 5.9 points (-2.9 to -8.8).

The percentage of Overseas subsidiaries worldwide anticipating increased capital investment fell in six industries including Electrical Machinery, with the DI falling by 0.5 points (15.5 to 15.0). It fell in North America, China and other Asian contries, and Europe.

Table 3

Table 4

Fig. 3

Fig. 4

Last Update: January 31, 2008

Ministry of Economy, Trade and Industry
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