AI Data Insight
In Japan's real GDP for the first quarter of 2026, the year-on-year growth contribution of private non-residential investment fell to 0.2 percentage points, slowing from 0.3 percentage points in the previous quarter. Although corporate profits remain at high levels, geopolitical tensions in the Middle East and surging energy costs have prompted companies to adopt a wait-and-see approach toward large-scale equipment investment. In the medium to long term, labor-saving investments to address labor shortages and the build-out of AI infrastructure will remain key cornerstones supporting a rebound in capital expenditure.