Publication of Survey on Planned Capital Spending for FY2026
Positive Investor Sentiment despite Rising Uncertainties including in the Middle East:
Investment Propped Up by Spending for AI, Data Centers, Urban Function Enhancement and Inbound Tourism
The Development Bank of Japan Inc. (DBJ) is pleased to announce the publication of the findings of the Survey on Planned Capital Spending for FY2026.
The results of the survey show a 19.7% increase in planned domestic spending by major companies in FY2026, pointing to active investor sentiment that even exceeds
the previous year’s planned level (up 14.3%) despite the rising uncertainties caused by the Middle East conflict, among others. The manufacturing sector plans
a double-digit increase in spending, driven by increased investment related to artificial intelligence (AI) and data centers. A substantial increase in capital spending
is also planned in the non-manufacturing sector, thanks to continued investment for grid enhancement and full-scale spending related to nuclear plants in electric power,
as well as investment in urban function enhancement and inbound tourism. By region, double-digit increases are planned across the board, led by Tohoku, Hokkaido and North Kanto & Koshin.
Our findings also reveal the following characteristics regarding corporate behavior:
- Among the 17 strategic areas, many companies are increasing spending on AI, semiconductors and digital, as a large percentage of the firms are planning
additional investment within three years in this area. They have high expectations for government support while focusing on expected growth when deciding to
increase domestic capital spending, thus indicating the crucial importance of building an environment that enables businesses to expect greater growth. - Many firms are switching their focus from efficient supply chains through lower costs to more resilient supply chains. They are responding to the Middle East
conflict primarily through the diversification of suppliers abroad. Planned capital spending in Japan shows faster growth than investment overseas, pointing to
the continued downtrend of the overseas investment ratio. - Major risks for companies include procurement risk due to the Middle East conflict, among others, as well as rising prices and labor shortages. Materials-based
industries are experiencing difficulty in passing on the rising costs. Most firms continue to raise wages. - Companies continue to regard wage increases as a means of investing in human resources to help recruit talent. An increasing percentage of companies are
finding that digital transformation is an alternative to talent recruitment. - Spending on digitalization continues to increase. Although AI adoption is spreading, its impact remains focused on operational efficiency. Spending on research
and development remains robust, particularly for AI, semiconductors and decarbonization. - As efforts for decarbonization continue to gain ground steadily, how to pass on related costs is becoming an even bigger issue for companies, indicating greater
difficulties in reconciling profitability and decarbonization. - By region, double-digit increases in capital spending are planned for FY2026 across the board, led by Tohoku, Hokkaido, and North Kanto & Koshin.
While a larger percentage of medium-sized firms than major firms consider that the Middle East conflict, rising prices, labor shortages and succession planning
are risk factors, they both see growth opportunities in new technologies including AI.
More details on the survey are available in the attached PDF.
Please note that no information regarding individual firms will be provided by DBJ, as the survey is conducted under conditions of confidentiality and anonymity.
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