The surge in firms’ capital spendings plan for the fiscal year that started in April to around a record high could be due to firms finally undertaking projects that have been held back by supply shortages. But it could also be a strategic shift away from complex cross-border supply chains towards more domestic production. While that would probably be good for Japan’s economy, it would bode ill for corporate profitability if firms traded off efficiency for supply chain security.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.