Publication of Survey on Planned Capital Spending for Fiscal Years 2016, 2017 and 2018

Survey on Planned Capital Spending for Fiscal Years 2016, 2017 and 2018 (Conducted in June 2017)

2017/09/14

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Development Bank of Japan Inc. ("DBJ": President & CEO Masanori Yanagi) is pleased to announce the publication of a survey on planned capital spending for fiscal years 2016, 2017 and 2018 entitled "Sixth Straight Year of Growth Led by Manufacturing: Broad-Based Spending on Production Efficiency and Inbound Tourism."

According to the survey, planned domestic capital spending by major firms for FY2017 in industry as a whole shows an increase (up 11.2%), continuing a rising trend for the sixth straight year.

Based on our findings, domestic capital spending in FY2017 may be characterized as follows.

(1)		In the manufacturing sector, the under-performance of the heavyweight transport equipment industry due to the completion of a round of investment for the introduction of new models will be partly offset by increased spending in chemicals and nonferrous metals on the production of components and materials for automobiles and electronics/ batteries, as well as on R&D. In general machinery, a rise in spending is planned to enhance production capacity and efficiency for aircraft, automobile and industrial robot components.
(2)		In the non-manufacturing sector, spending will continue in order to capture inbound tourists in the run-up to the Tokyo Olympics/Paralympics, including on airport facilities development in transportation, large-scale urban redevelopment projects in real estate, and hotels and theme parks in services. In wholesale & retail, investment will be driven by the introduction of labor-saving equipment mainly among CVS outlets.
(3)		Continuing from the previous year, our opinion poll this year focuses on "investment in a broader sense," including overseas tangible fixed asset investment, R&D, M&A and human investment, as well as domestic tangible fixed asset investment. Among the developments leading to human and information technology investment, both manufacturers and non-manufacturers responded that they will not immediately utilize AI and IoT to improve productivity but that they will do so in five years, in an effort to cope with the labor shortage.

Please note that no information regarding individual firms will be provided by DBJ as the survey is conducted under conditions of confidentiality.

More details on the survey are available on the Survey Report (Research Report) page of the DBJ website (http://www.dbj.jp/).

DBJ's reports are one of the ways in which it fulfills its corporate philosophy of "Applying financial expertise to design the future: We solve issues facing our clients and society by opening new financial frontiers to achieve sustainable development in Japan and across the globe."

Inquiries:
Economic & Industrial Research Department
Development Bank of Japan Inc.
E-mail: capex@dbj.jp