Capital investment in the Tokai region rose 5.4% from the previous fiscal year overall, as large companies became more willing to invest while small and medium-sized companies adopted a more cautious stance. In manufacturing, investment by large companies increased while that by small and medium-sized companies declined, producing sharply divergent results.
Capital investment across all industries in the three Tokai prefectures rose 5.4% from the previous fiscal year, while total manufacturing investment also increased by 5.6%. Investment trends in the region varied substantially by company size. Investment appetite strengthened mainly among large and midsize companies, while caution spread among small and medium-sized companies. However, some observers said the increase in total investment was concentrated among large companies. The Chubu Bureau of Economy, Trade and Industry described the current situation as showing “very strong capital investment appetite.”
By company size, investment by large companies increased 6.0%, while investment by small and medium-sized companies fell 14.7%, with the decline widening from the March survey. Some observers believe that the growth in overall investment will continue to be driven mainly by large companies.
Rising costs are behind the investment figures, with some saying that higher construction and labor costs could cause companies’ investment plans in the Chubu region to exceed planned levels. Steelmakers and other companies indicated that this was possible for their investment during the current fiscal year.