Domestic expenditure to overtake export growth

As the IT boom in world markets continues to feed demand for semiconductors and electronic components, Japan's export growth is the near-term driver of the economy. However, fund managers believe that an upturn in domestic capital expenditure should soon overtake export growth, possibly laying the foundations for a sustainable economic expansion. Yasushi Okada, analyst at Credit Suisse First Boston, said: "We are seeing brighter signs in capex. Increased corporate cash flows tend to lead corporate capex by approximately two quarters. According to the corporate survey for the fourth quarter...