AI Data Insight
Japan's gross nominal fixed capital formation in the first quarter of 2026 reached 188.89 trillion yen, continuing its expansion from 186.81 trillion yen in the previous quarter and hitting a record high. However, external market data showed that real capital expenditure for the same period was revised downward, highlighting that the inflated nominal total was partly driven by inflation and rising costs. Geopolitical risks in the Middle East and the Bank of Japan's interest rate path will be the two key factors determining future capital expenditure momentum.