Capital spending to become key driver for productivity

Although Japanese companies have received upward earnings revisions, there is still a level of uncertainty surrounding the market. The potential for slower economic growth both domestically and overseas has added a level of uncertainty to the prospects for earnings going forward. Moreover, consumer spending in Japan has been particularly disappointing this year. Despite a recovery in factors that typically lead to positive consumer demand - low unemployment, a positive wealth effect from higher asset prices and rising consumer confidence - Japanese consumption growth remains relatively ...