Japan: Limited room for capex to increase

- Limited room for capex to increase
• "Recent capex-related data suggests that corporate capital expenditure has finally bottomed out"
• "However, our analysis of the capital stock adjustment cycle suggests that there is limited likelihood of capex expansion in the foreseeable future"
• "Cyclically, we anticipate capex will reenter a soft patch towards the early 2011, with exports and domestic production likely to slow"
- Corporate and Consumer Sentiments Deteriorated Sharply
• "Corporate and consumer sentiments deteriorated sharply in August reflecting the recent sharp yen appreciation and a decline in stock prices as well as concerns about slump after the last-minute demand before the expiration of eco car subsidies"
- Demand for Funds Remains Weak
• "Bank lending continued to drop, falling 2.0%yoy in August, reflecting the weak demand for funds among the private corporate sector"

CreditSuisse Japan Economics Weekly 20100909

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