TOKYO (dpa-AFX) - Japan's private investment is set to continue to rebound strongly this year as firms look past a brief hit from Omicron, Tom Learmouth, an economist at Capital Economics, said.
Official data released on Monday showed that core machinery orders grew 3.4 percent on a monthly basis in November following a 3.8 percent increase in October. Year-on-year, growth in core machinery orders improved to 11.6 percent from 2.9 percent a month ago.
The increase in machinery orders in November supports the assessment that business investment recovered strongly across the fourth quarter.
'We think business investment surpassed its pre-virus level this quarter and will continue to rebound over the coming quarters,' Learmouth noted.
However, the level capital spending reached before the 2019 sales tax hike may not be regained until the end of next year, the economist added.
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