Development Bank of Japan
Research Report
No. 33

Survey on Planned Capital Spending
for Fiscal Years 2001, 2002 and 2003
(Conducted in August 2002)

November 2002

Economic and Industrial Research Department
Development Bank of Japan

Contents
I

Outline ............................................................................................................................................ 1

II

Summary ........................................................................................................................................ 3
1. Overall Condition .................................................................................................................... 3
2. Actual Capital Spending for FY2001 ...................................................................................... 3
3. Planned Capital Spending for FY2002 .................................................................................... 3
4. Features of Planned Capital Spending for FY2002 ................................................................. 4
5. Planned Capital Spending for FY2003 .................................................................................... 4

III Survey Results................................................................................................................................ 7
1. Actual Capital Spending for FY2001 ...................................................................................... 7
2. Planned Capital Spending for FY2002 .................................................................................... 9
3. Planned Capital Spending for FY2003 .................................................................................. 13
4. Investment Motives................................................................................................................ 16
5. Trends in Land Investment, by Principal Business Sector..................................................... 17
6. Capital Spending Abroad, by Principal Business Sector ....................................................... 19
7. Trends in Capital Spending by Foreign-affiliated Firms, by Principal Business Sector........ 20
8. Capital Spending Cash Flow Ratio, by Principal Business Sector ........................................ 21
9. Information Technology Investment, by Principal Business Sector...................................... 21

Development Bank of Japan Research Report/ No. 33iI Outline
Objectives
This survey has been conducted biannually (inFebruary and August) since FY1956 by the Development Bank of Japan to assess major trends
in the capital spending of Japanese industry.
The Scope of Capital Spending

surance and medicine. The Teito Rapid Transit
Authority has been included in the survey despite
the fact that it is classified as a (non-financial)public corporation under the System of National
Accounts (SNA).
Date of Survey
August 10, 2002
Contents of the Survey

In this survey, “capital spending” refers to domestic investment in tangible fixed assets of
one’s own corporation; they include buildings,
structures and equipment (including ships, aircraft, rolling stock, tools and furnishings), as
well as the purchase and development of land
(excluding the purchase of land for subdivisionin the real estate industry). Accordingly, intangible fixed assets are excluded, as are capitalspending abroad and investment in subsidiaries/affiliated firms (except that “information
technology investment” includes intangible fixed
assets as indicated later).
Survey Methods
The survey was conducted by means of questionnaire (sent to and completed by individual
firms).
Capital spending has been calculated basedon construction. In general, it is calculated as thesum total of tangible fixed assets, including theconstruction in progress account (without subtracting resale value, depreciation and loss).

(i) Actual capital spending in FY2001 andplanned capital spending for FY2002 andFY2003(ii) Details of individual construction projects
for each of the above years(iii) Actual revenue and expenditure in FY2001
and estimated revenue and expenditure for
FY2002(iv) Investment motives in FY2001 and FY2002(v) Trends in land investment in FY2001,
FY2002 and FY2003(vi) Capital spending abroad for FY2001 andFY2002(vii) Information technology investment in
FY2001 and FY2002
Responses
The responses to the survey are shown below. In
terms of the number of targeted firms and respondents, the survey is the largest among similar national surveys of capital spending trends.

Target Firms
This survey covers all private firms in Japan’smajor industries capitalized at ¥1 billion or more,excluding agriculture, forestry, finance and in-

Principle Business Classification
Investment Specific Classification

No. of Firms
Targeted
3,566
4,300

No. of Firms Giving
Valid Responses
3,021
3,698

Proportion of
Valid Responses
84.7%
86.0%

Development Bank of Japan Research Report/ No. 33

1pal business classification is adopted in somecases.

On the Totals
Industrial classification
There are two types of industrial classifications:principal business classification and investment
specific classification. The former classifies andtotals the companies’ responses based on themain business interest of each company, whereas
the latter classifies and totals the amount of investment for each business sector in a company’s
response according to industrial sector.
Although mainly the investment specificclassification is used for the analysis, the princiTargeted FYTiming of survey
August 2000
February 2001
August 2001
February 2002
August 2002
February 2003

2

1999
ActualTiming of the survey and years covered
The survey is conducted twice a year, inFebruary and in August. Since each fiscal year issurveyed five times until planned investments
are materialized, the results reveal business sentiments in detail, for example, through the extent
to which planned investments have been modified.

2000

2001

Modified plan
Estimate
ActualPlan for next FY
Initial plan
Modified plan
Estimate
ActualDevelopment Bank of Japan Research Report/ No. 33

2002

2003

Plan for next FY
Initial plan
Modified plan
Estimate

Plan for next FY
Initial planDecrease in Capital Spending for the Second Consecutive Year;
Adjustment Continuing in the Manufacturing Sector---Urban infrastructures supporting overall investment under conservativeplans--II Summary
1.

Overall Condition

Actual capital spending for all industries in
FY2001 was down 9.3% overall, resuming its
downtrend after positive growth in FY2000. (Allfigures are based on construction; the rate of
growth or decline is based on a comparison withthe previous year’s figures.) Planned capitalspending for FY2002 shows a continued decline
in the manufacturing sector (down 5.6%) but aturning to an increase in the non-manufacturingsector (up 1.7%), meaning a decline for all industries for the second consecutive year (down
0.6%).
2.

Actual Capital Spending for FY2001

Looking at actual capital spending for FY2001,
there were downward revisions in most industries after the previous survey (February 2002), andthe overall figure was down 9.3% as the downtrend accelerated in manufacturing (down 9.7%)
and the initially expected increase was reversed
in non-manufacturing (down 9.2%).
3.

Planned Capital Spending for FY2002

Total industries’ planned capital spending for
FY2002 will decrease for the second consecutive
year (down 0.6%), continuing to decrease in the
manufacturing sector and starting to increase in
the non-manufacturing sector.
In the manufacturing sector (down 5.6%),
capital spending is expected to increase in theautomobile industry as companies introduce newmodels, as well as in the petroleum industry as
measures are taken for environmental protection.
However, decreases are expected in many industries, including electric machinery, mainly due todeclines in areas involving semiconductors, aswell as paper & pulp, chemicals, cement, ceramics & glass, iron & steel, and non-ferrous
metals, largely affected by the completion oflarge investments in the previous year.
In the non-manufacturing sector (up 1.7%),
decreases are expected in electric power, due tolimited investment in thermal power plants; intelecommunications & information, due to restraints on mobile telephone investment; and inservices, due to the completion of a large
amusement park. Increases are expected however
in transportation, mainly as a result of the building of new railway lines and extensions and continued construction of airports, and in real estate,
led by the full-scale promotion of a large development project in the Tokyo metropolitan area,
as well as in leasing, where demand is expected
to increase.
In comparison with the previous survey(February 2002), investment for FY2002 wasrevised downwards in both the manufacturingsector (down 2.3%) and the non-manufacturingsector (down 1.6%), resulting in a downward
revision of 1.8% overall.
Year-on-year comparison for FY2002
shows an overall increase of 2.3% in the first
half, but a decline of 3.2% in the second half.
Looking at the respective shares of different
motives for investing in the manufacturing sector,
the share of “expansion of production capacity”
is dropping sharply while that of “maintenanceand repair” is increasing. The share of “research& development” is growing steadily in both thematerials and processing & assembly sub-sectors.
“Product development and upgrading” has thelargest share in processing & assembly.
Planned land investment is lower in both the
manufacturing and non-manufacturing sectors,
down 33.8% overall from the previous year.
However, land investment tends to be subject tosubstantial upward revision after the planning

Development Bank of Japan Research Report/ No. 33

3stage.
Capital spending abroad is slated to increase
6.1% overall. Investments in the EU and Asia are
expected to rise, partially offset by reduced investments in the US and other regions.
The domestic capital spending of foreignaffiliated firms (132 firms owned one-third orover by foreign capital) shows a slight increaseof 1.8% overall, as declines in electric machineryand telecommunications & information are morethan offset by increases in transport equipment,
petroleum and leasing. Foreign-affiliated firms
now account for 5.6% of total capital spending inJapan.
The ratio of capital spending to cash flow(net income plus depreciation expenses) will fallfrom the previous year to one of the lowest levels
recorded so far in both manufacturing and nonmanufacturing.
Looking at information technology investment on the user side, continued increases are
expected in both the manufacturing sector (up11.9%) and the non-manufacturing sector (up1.3%). Accordingly, the total for all industries
will rise 4.8%, showing a healthy growth ascompared with the decline in total capitalspending. Fixed intangible assets (33.4%) and
fixed tangible assets (31.5%) had the largest
shares in actual IT investment in FY2001.
4. Features of Planned Capital Spending for
FY2002
Revenues and profits are expected to recoversteadily in FY2002 from the poor performance inFY2001. However, relatively conservative capi-

4

Development Bank of Japan Research Report/ No. 33

tal spending plans still prevail. As regards investment motives in the manufacturing sector,
the share of “expansion of production capacity”
will decline, while that of “maintenance and repair” will increase. At the same time, the rising
shares of “product development and upgrading”
and “research & development” attest to the firmness of forward-looking investment.
In the non-manufacturing sector, the restrained mood continues in the heavy-weighted
electric power and telecommunications & information industries. Urban infrastructures, however, are supporting overall investment: transportation infrastructure in metropolitan areas
including railways and airports real estate redevelopment projects in the Tokyo metropolitanarea.
5. Planned Capital Spending for FY2003
Planned capital spending for FY2003 shows an
overall decline of 5.1%, although many investment projects still remain uncertain in both the
manufacturing (down 3.9%) and non-manufacturing (down 5.3%) sectors.

Capital Spending

Total

FY2001 Actual (2,821firms)
FY2002 Planned (3,021 firms) FY2003 Planned (1,385 firms)
GrowthGrowthGrowth
FY2000 FY2001
FY2001 FY2002
FY2002 FY2003
Rate (%)
Rate (%)
Rate (%)
ActualActualActualPlannedPlanned Planned
2001/2000
2002/2001
2003/2002
238,837 216,528-9.3
222,206 220,817-0.6
81,617
77,485-5.1

Excluding electric power

203,659

184,812-9.3

189,562

191,037

0.8

58,69555,332-5.7

Manufacturing

75,23867,909-9.7

70,20966,297-5.6

11,940

11,480-3.9

Non-Manufacturing

163,599

148,619-9.2

151,997

154,519

1.7

69,67766,004-5.3

Excliding electric power

128,422

116,903-9.0

119,353

124,739

4.5

46,75543,852-6.2

Electric power

35,17831,716-9.8

32,64429,780-8.8

22,922

22,152-3.4

Note: Monetary amounts are in 100 million yen.

Growth in Capital Spending
％

30
Total
Manufacturing
Non-Manufacturing

20
10
0
-10
-20
-30
86

87

88

89

90

91

92

93

94

95

96

97

98

99 2000 2001 2002 FY(Planned)

Development Bank of Japan Research Report/ No. 33

5Capital Spending by Industry
Capital Spending (100 million yen)

Growth Rate (%)

Component Rate (%)

FY2001

FY2002

FY2002

FY2003

FY2001

FY2002

ActualPlannedPlannedPlanned 2001/2000 2002/2001 2003/2002

ActualPlanned(3,021 firms)(1,385 firms)(3,021 firms)

Total

222,206

220,817

81,617

77,485

-9.3

-0.6

-5.1

100.0

100.0

Excluding Electric Power

189,562

191,037

58,69555,332

-9.3

0.8

-5.7

85.3

86.5

Manufacturing

70,20966,297

11,940

11,480

-9.7

-5.6

-3.9

31.6

30.0

Food and Beverages

4,742

4,494

997

854

-6.5

-5.2

-14.3

2.1

2.0

727

738

54

62

3.3

1.5

13.6

0.3

0.3

Paper and Pulp

2,557

1,982

383

389

15.1

-22.5

1.7

1.2

0.9

Chemicals

10,587

10,144

2,171

2,197

8.1

-4.2

1.2

4.8

4.6

Organic Chemicals

4,909

4,513

1,019

1,116

8.4

-8.1

9.5

2.2

2.0

TextilesPharmaceuticals

2,243

2,371

565

467

7.6

5.7

-17.4

1.0

1.1

Petroleum

1,201

1,795

1,004

774

34.7

49.5

-22.9

0.5

0.8

Cement, Ceramics and Glass

2,267

1,703

283

335

-7.4

-24.9

18.3

1.0

0.8

Iron and Steel

4,226

3,431

924

1,070

7.5

-18.8

15.8

1.9

1.6

Ordinary Steel

3,490

2,691

707

907

8.6

-22.9

28.3

1.6

1.2

Non-Ferrous Metals

3,506

2,085

220

213

10.2

-40.5

-3.2

1.6

0.9

General Machinery

4,407

4,323

465

435

-3.3

-1.9

-6.5

2.0

2.0

Electric Machinery

17,366

15,861

3,051

3,000

-34.4

-8.7

-1.7

7.8

7.2

Electric Devices, etc.

11,62910,281

2,265

2,220

-40.5

-11.6

-2.0

5.2

4.7

Precision Machinery

1,438

1,274

143

127

-5.7

-11.4

-11.0

0.6

0.6

Transportation

13,113

14,510

1,853

1,673

2.0

10.7

-9.7

5.9

6.6

Automobiles

12,291

13,776

1,734

1,573

1.1

12.1

-9.3

5.5

6.2

4,072

3,959

394

352

-9.9

-2.8

-10.6

1.8

1.8

Non-Manufacturing

Other Manufacturing

151,997

154,519

69,67766,004

-9.2

1.7

-5.3

68.4

70.0

Excluding Electric Power

119,353

124,739

46,75543,852

-9.0

4.5

-6.2

53.7

56.5

Construction

1,620

1,378

349

313

-0.1

-14.9

-10.3

0.7

0.6

Wholesale and Retail11,375

11,715

3,807

3,590

-19.6

3.0

-5.7

5.1

5.3

Retail

8,732

9,611

3,086

3,042

-23.4

10.1

-1.4

3.9

4.4

Real Estate

8,811

9,424

3,267

3,241

-20.5

7.0

-0.8

4.0

4.3

Transportation

16,493

20,916

7,406

4,452

-7.1

26.8

-39.9

7.4

9.5

Railways

10,122

13,824

4,146

2,468

-20.5

36.6

-40.5

4.6

6.3

471

289

202

144

23.4

-38.6

-28.9

0.2

0.1

Marine Transport
Airlines

1,933

1,845

40

19

14.7

-4.6

-52.1

0.9

0.8

Warehousing, etc.

2,688

3,520

2,691

1,549

58.3

30.9

-42.4

1.2

1.6

Electric Power and City Gas

35,31432,546

25,68524,981

-10.3

-7.8

-2.7

15.9

14.7

Electric Power32,64429,78022,922

22,152

-9.8

-8.8

-3.4

14.7

13.5

City Gas

2,669

2,766

2,764

2,829

-15.3

3.6

2.3

1.2

1.3

Telecom. and Information

35,05634,381

4,834

4,059

-10.8

-1.9

-16.0

15.8

15.6

Leasing

39,39040,89923,42824,624

2.8

3.8

5.1

17.7

18.5

Services

3,524

2,688

749

604

-35.5

-23.7

-19.4

1.6

1.2

416

572

153

142

34.8

37.4

-7.0

0.2

0.3

Other Non-Manufacturing

Notes: Other Manufacturing includes Publishing and Printing, Rubber, Metal Products and others.
Other Non-Manufacturing includes Fishing, Mining and others.

6

Development Bank of Japan Research Report/ No. 33

III

Survey Results

1. Actual Capital Spending for FY2001
OutlineOverall actual capital spending for FY2001 resumed its decline (down 9.3%) as declines wererecorded in both the manufacturing and nonmanufacturing sectors.
In the manufacturing sector, (down 9.7%),
spending increased in chemicals, led by investments in high-value added products; in iron &steel, led by repair works largely in blast furnacesteel makers; and in non-ferrous metals, led byinvestments in optical parts and fiber. These increases have not been able to prevent the declineof total spending in the sector, as capital spending in electric machinery fell substantially fromthe significant increase recorded in the previous
year, led by capacity investment in electrodevices such as semiconductors and liquid crystals.
In the non-manufacturing sector (down
9.2%), spending increased in the heavy-weighted
leasing industries. Declines were recorded
however in wholesale & retail, due to reaction to
the accelerated establishment of outlets ahead of
the promulgation of the Large-scale Retail Stores
Law; in real estate due to reaction to the acquisition of existing assets; in transportation due to a
respite in the building of new railway lines andextensions; and in services as the construction oflarge amusement parks had peaked. In addition,
spending in electric power declined for theeighth consecutive year as the mood remained
subdued, and a double-digit decline was recordedin the telecommunications & information industry, largely due to restrained investment in fixedcommunications. Overall, total capital spending
turned down again in the non-manufacturingsector.
Trends by Industrial Sub-Sector
The trends in actual capital spending for FY2001,
classified according to industrial sub-sector, areas follows. (Numbers in curly brackets { } show
the percentage of total capital spending accounted for by each sub-sector.)

Materials (up 7.1%) {10.7%}
Total capital spending in the materials industries
rose for two years in a row despite turning downin cement, ceramics & glass, as the increase
continued for a second consecutive year in nonferrous metals and spending started climbing
again in iron & steel and textiles.
Spending in chemicals increased for thesecond straight year due to investments in organic chemicals for high-value added products
and the construction of plants and laboratories inpharmaceuticals and other chemicals. A second
straight increase was also recorded in paper &pulp, due to investment in the rebuilding of production systems and environmental protection in
addition to capacity investment in special paper;
as well as in non-ferrous metals due to the contribution of investment related to optical parts,
fiber and 300mm silicon wafers. Spending turned
up in iron & steel, led by blast furnaces.
Meanwhile, cement, ceramics & glass saw
spending turn down from the substantial increasein the previous year, as restraint continued in
cement and investment decreased in products
related to information equipment including materials for optical parts and liquid crystal displays.
Processing & Assembly (down 17.5%) {20.3%}
In spite of the first increase in four years in
automobiles, capital spending in the processing& assembly sub-sector recorded a double-digit
decline overall as investment in the heavyweighted electric machinery industry slumped
from the significant growth in the previous year.
Spending also decreased in many other industries
including general machinery, precision machinery and food & beverages.
Despite a decline in four-wheeled vehicles,
the automobile industry experienced the firstincrease in spending in four years, with the contribution from new model investment in autoparts, among others. However, capital spending
in other machinery industries slumped in general.
Spending in electric machinery dropped heavily
as investments plummeted in electro-devices
related to semiconductors and liquid crystals, inparticular. Capital spending in precision machinery fell from significant growth in the previous
year despite steady investment in medical instruments, as spending peaked in other sectors ofDevelopment Bank of Japan Research Report/ No. 33

7the industry including semiconductor equipment.
In the general machinery industry, a healthy
growth in spending in office and household
equipment was more than offset by downward
revisions in industrial machinery and generalmachinery parts, resulting in a decline for thesecond consecutive year. Likewise, capitalspending decreased for the fourth consecutive
year in food & beverages, as stagnant conditions
prevailed with the exception of investment fororganizational restructuring in sugar manufacturing.
Energy (down 8.9%) {16.6%}
The energy sub-sector recorded a decrease incapital spending for the eighth consecutive year.
Spending in electric power decreased for theeighth year running as the nine major electric
power companies revised their investment
downwards amidst an underlying trend towardcurbs on investment. In the gas industry as well,investment declined for the sixth consecutive
year largely due to the prevailing restrictive
mood regarding city gas and the termination oflarge investments in heat supply in particular.
Meanwhile, spending in petroleum rose for the
first time in nine years thanks to the consolidation and refurbishment of distribution facilities
as well as to active investment in environmental
protection including the desulfurization of lightoil.

8

Development Bank of Japan Research Report/ No. 33

Non-manufacturing, excluding Energy(down 8.9%) {52.4%}
Despite an increase in leasing, total capitalspending in non-manufacturing excluding energy
turned down due to decreases in telecommunications & information, wholesale & retail, realestate, services and transportation.
Capital spending in leasing increased for thethird straight year, led by telecommunicationequipment, office equipment and transport
equipment. In contrast, a double-digit decline
was recorded in telecommunications & information largely due to cutbacks in fixed communication, although investment was active in broadcasting for new premises and digitalization.
Spending dropped 20% in wholesale & retail,largely due to reaction to the accelerated establishment of outlets by supermarkets and otherstores prior to the promulgation of the Largescale Retail Stores Law in the previous year, as
well as in real estate due to reaction to the acquisition of existing assets in the previous year.
Services saw a substantial drop in spending,mainly due to the completion of a large amusement park in the Kansai region. Spending continued to decline in transportation with increased
investment related to airport construction andaircraft having been more than offset by a slowdown in the construction and extension of railway lines.

Capital Spending, by Industry
FY1999Growth Rate (%)
FY2000 FY2001 FY2002

FY2003

FY1999

Share (%)
FY2000 FY2001

FY2002

Materialsa
Paper & Pulp
Chemicals
Iron & Steel

-21.5
-29.4
-22.4
-14.0

10.0
24.2
10.1
-21.1

7.1
15.1
8.1
7.5

-15.9
-22.5
-4.2
-18.8

5.7
1.7
1.2
15.8

8.5
0.7
3.9
2.0

9.1
0.9
4.1
1.6

10.7
1.2
4.8
1.9

9.1
0.9
4.6
1.6

Processing & Assemblyb
Food & Beverages
Electric Machinery
Automobiles

-12.2
-2.7
-0.0
-18.6

15.1
-3.2
38.7
-3.2

-17.5
-6.5
-34.4
1.1

-1.6
-5.2
-8.7
12.1

-6.7
-14.3
-1.7
-9.3

20.8
2.4
8.2
5.3)

23.0
2.2
10.8
5.0

20.3
2.1
7.8
5.5

20.1
2.0
7.2
6.2

Energyc
Petroleum
Electric Power

-7.4
-32.3
-5.6

-9.9
-36.8
-9.5

-8.9
34.7
-9.8

-5.7
49.5
-8.8

-3.5
-22.9
-3.4

18.0
0.6
16.0

15.7
0.4
14.0

16.6
0.5
14.7

15.7
0.8
13.5

Non-Manufacturing
Excluding Energyd
Construction
Wholesale & Retail
Real EstateTransportation
Telecom.& Information
LeasingServices

-4.5
-35.0
-8.5
-19.2
-2.7
-12.5
7.6
38.9

3.7
-5.4
6.6
17.7
-5.0
2.1
5.4
3.7

-8.9
-0.1
-19.6
-20.5
-7.1
-10.8
2.8
-35.5

4.5
-14.9
3.0
7.0
26.8
-1.9
3.8
-23.7

-6.7
-10.3
-5.7
-0.8
-39.9
-16.0
5.1
-19.4

52.7
0.8
5.2
4.0
7.6
15.4
17.6
2.1

52.2
0.7
5.6
4.8
7.0
15.7
16.2
2.1

52.4
0.7
5.1
4.0
7.4
15.8
17.7
1.6

55.1
0.6
5.3
4.3
9.5
15.6
18.5
1.2

All Industries
Excluding Electric Power

-8.4
-8.9

4.1
6.8

-9.3
-9.3

-0.6
0.8

-5.1
-5.7

100.0
84.0

100.0
86.0

100.0
85.3

100.0
86.5

Manufacturing
Non-Manufacturing
Excluding Electric Power

-15.5
-5.0
-4.8

12.5
0.4
3.5

-9.7
-9.2
-9.0

-5.6
1.7
4.5

-3.9
-5.3
-6.2

29.9
70.1
54.1

32.5
67.5
53.6

31.6
68.4
53.7

30.0
70.0
56.5

Note: FY2001 and FY2002 share (%) figures are based upon 3,021 companies that responded to the survey in both years.
aMaterials: textiles; paper & pulp; chemicals; cement, ceramics & glass; iron & steel; non-ferrous metalsb
Processing & assembly: food & beverages; general machinery; electric machinery; precision machinery; transportation;other manufacturingcEnergy: petroleum; electric power; city gas and coal; crude oil & natural gasdNon-manufacturing, excluding energy: non-manufacturing industries excluding those industries mentioned in ‘Energy’
above

2.

Planned Capital Spending for FY2002

OutlineTotal industries’ planned capital spending for
FY2002 will decrease for the second consecutive
year (down 0.6%), continuing to decrease in the
manufacturing sector and starting to rise in the
non-manufacturing sector.
In the manufacturing sector (down 5.6%),
capital spending is expected to increase substantially in the automobile industry as companies
introduce new models. Substantial increase isalso planned in petroleum as measures are taken

for environmental protection. However, total
capital spending in the sector will decline as decreases are expected in many other industries.
Sluggish investment will result in a spending
decline in electric machinery, particularly inareas involving semiconductors. The completionof large-scale projects in the previous year will
reduce spending in materials industries such as
chemicals, iron & steel and paper & pulp.
Spending is also scheduled to decline in nonferrous metals and cement, ceramics & glass, due
to the drop in investment in IT-related materials.
In the non-manufacturing sector (up 1.7%),
Development Bank of Japan Research Report/ No. 33

9decreases are planned in electric power, due tolimited investment in thermal power plants; intelecommunications & information, due to restraints on mobile telephone investment; and inservices, due to the completion of a large
amusement park. Increases are expected, however, in the transportation industry, mainly as aresult of continued airport construction, thebuilding of new railway lines and extensions,and active investment in the Shinkansen bullet
train project. Other increases will take place inreal estate, led by the full-scale promotion of alarge-scale redevelopment project in the Tokyo
metropolitan area, and in leasing, where demandis expected to expand, thus contributing to theoverall increase in capital spending for the nonmanufacturing sector.
Trends by Industrial Sub-sector
The trends in planned capital spending for
FY2002, classified by industrial sub-sector, areas follows. (Numbers in curly brackets { } show
the percentage of total planned capital spending
accounted for by each sub-sector.)
Materials (down 15.9%) {9.1%}
Planned capital spending in the materials subsector will suffer a double-digit drop despite aslight growth expected in textiles, as investment
will decline in all other industries largely due tothe completion of large investment projects andlower investment in IT-related materials.
Despite the continued strong investment inpharmaceuticals, capital spending in chemicals isscheduled to decrease, as declines will be recorded in organic, inorganic and other chemicals.
Spending will turn to a double-digit decline inpaper & pulp, with continued investment in environmental protection being more than offset by
the completion of capacity investment in special
paper and projects for rebuilding production
systems, as well as in iron & steel, in reaction tolarge refurbishment projects particularly among
blast furnace steel manufacturers. Non-ferrous
metals and cement, ceramics & glass will bothexperience substantial drops in spending fromthe previous year due to reduced investment in
IT-related materials, including optical parts andfiber for the former, and optical parts, semiconductors and materials for liquid crystals for the10

Development Bank of Japan Research Report/ No. 33

latter.
Processing & Assembly (down 1.6%) {20.1%}
Setting aside the second consecutive increase inautomobiles, capital spending in the processing& assembly sub-sector is expected to record aslight decline as spending in electric machineryand precision machinery will decrease primarily
due to restrained investment in semiconductors
and other IT-related materials. Also, other majorindustries including general machinery and food& beverages will see a decline in spending forthe second consecutive year.
The automobile industry will post a doubledigit increase in spending, led by investment infour-wheeled vehicles for new models as well as
projects related to the development of businessstructure.
Increased investments in thin displays will
not stop the electric machinery industry fromrecording a decline in spending for the second
consecutive year, as the restrictive mood prevails
particularly in areas related to semiconductors.
Spending in precision machinery will also post adouble-digit decrease largely due to reduced
investment in semiconductor equipment. Generalmachinery will experience a slight decline incapital spending with restraints in general machinery parts and metal working machinery morethan offsetting the continued healthy investment
in office and household equipment. Spending
will continue to decline in food & beverages, as
active investment in soft drinks will not beenough to compensate for the reduction of investment in beer & other alcoholic beverages andprocessed meat & dairy products.
Energy (down 5.7%) {15.7%}
Capital spending in energy is expected to decline
for the ninth straight year.
In the electric power industry, spending isslated to decline for the ninth consecutive year
due to restraints on power source development
and distribution facilities, particularly for thermal power plants of the nine major electric power companies, as well as to the completion of
investments in the wholesale power supply business. In contrast, the gas industry will experience
the first increase in spending in seven years
thanks to increased investment in city gas forLNG bases and supply facilities, as spending inheat supply will maintain the level of the previous year. A substantial increase is planned forthe second consecutive year in petroleum due toinvestment in desulfurization and other environmental protection projects and self-service filling
stations.
Non-manufacturing, excluding Energy(up 4.5%) {55.1%}
Looking at the non-manufacturing sector, excluding energy, declines will continue in services,
telecommunications & information and construction, but spending is set to increase in industries such as transportation (railways in particular), leasing, real estate, wholesale & retail.
Overall, capital spending in the sub-sector as awhole is expected to rise.
A double-digit drop in spending is expected
in services, due to the completion of a large
amusement park in the Tokyo metropolitan area,
as well as in construction, largely due to curbs on
investment by general contractors. A continued
decline is planned in telecommunications & information mainly due to restraints on spending in
mobile telephones, although the construction of
new premises and system-related investments
will progress in broadcasting and information
services.
In contrast, spending in transportation will
increase substantially as a result of continued
airport construction, the building of new railway
lines and extensions in the waterfront area, andactive investment in the Shinkansen bullet train.
In leasing, demand is expected to increase
mainly for IT and commercial equipment.
Spending will also rise in real estate, led by thefull-scale promotion of a large-scale redevelopment project in the Tokyo metropolitan area, as
well as in wholesale & retail, thanks to the establishment of new outlets by supermarkets anddo-it-yourself stores.
Trends and Features of Capital Spending for
FY2002, by Industry
The trends and features of capital spending in
main industries are shown below. The figures inparentheses ( ) indicate changes in the rate of
growth in capital spending for the industry inquestion between FY2001 and FY2002. The

figures in curly brackets { } show the percentage
of total planned spending for FY2002 accounted
for by each industry.
Materials
Chemicals (8.1%→-4.2%) {4.6%}
Spending will increase in pharmaceuticals due toinvestment in new products and the expansion oflaboratories. It will turn down in organic chemicals following the exceptional result in the previous year, despite some investments for the enhancement of core businesses. Investment will be
restrained in organic and other chemicals. Overall, capital spending in the industry will decline
for the first time in three years.
Iron & Steel (7.5%→-18.8%) {1.6%}
The subdued tone continues in both ordinary andspecial steel. The investment plans of individual
manufacturers focus on maintenance and rationalization. With the completion of large repair
works, capital investment in the industry as awhole is expected to resume its downtrend.
Non-ferrous Metals (10.2%→-40.5%) {0.9%}
Capacity investment in optical parts and fiber
will plummet as investments related 300mm
silicon wafers has peaked. All in all, capitalspending in the industry will fall for the first timein three years.
Paper & Pulp (15.1%→-22.5%) {0.9%}
Some investments for environmental protection
will continue, including the introduction of deinked pulp (DIP) production equipment and nonchlorine bleaching facilities. However, many
capacity investments and projects related to thereconstruction of production systems have already been completed. As a result, capitalspending in the industry is expected to decline
for the first time in three years.
Cement, Ceramics & Glass (-7.4% → -24.9%){0.8%}
Curbs on investment continue in cement. Investment in IT materials such as glass boards forliquid crystal displays will be held back in glassand other areas, due to the deterioration in supply
and demand. Overall, spending in the industry

Development Bank of Japan Research Report/ No. 33

11will decline for the second consecutive year.
Textiles (3.3%→1.5%) {0.3%}
Growth in capital spending will slow down due
to a reactionary drop in synthetic fiber.
Processing & AssemblyElectric Machinery (-34.4%→-8.7%) {7.2%}
Spending will remain unchanged in electronicequipment and will decline in electric equipment.
It will drop further in electronic component anddevices largely due to sluggish investment related to semiconductors, although investment insome flat panel displays is expected to increase,such as PDPs. Overall, the decline in capitalspending in the entire industry will be alleviatedto some extent.
Automobiles (1.1%→12.1%) {6.2%}
Backed by the continued active investment in
new models, spending in four-wheeled vehicles
will rise substantially, assisted by investment forbusiness reorganization and the enhancement ofdomestic sales networks. Although spending inparts & bodies will turn down as investment for
new models has peaked, capital spending in theautomobile industry as a whole is expected toincrease for the second consecutive year.
Food & Beverages (-6.5%→-5.2%) {2.0%}
Spending will increase substantially in softdrinks, but will continue to decline in beer &other alcoholic beverages with the completion ofa series of plant reorganization projects. Investment in processed meat & dairy products is expected to decline, especially in dairy products.
Overall, the industry will record a decline incapital spending for the fifth straight year.
General Machinery (-3.3%→-1.9%) {2.0%}
Spending will continue to increase in office andhousehold equipment, mainly for new products,
as well as in boilers & motors, driven by investment for rationalization. General machinery parts
and industrial machinery will experience a continued decline in spending, due to the worsening
supply-and-demand situation and the completionof plant construction/expansion projects. As
spending in metal processing machinery is expected to turn down due to the termination of
12

Development Bank of Japan Research Report/ No. 33

plant construction and renewal projects in theprevious year, capital investment in the wholeindustry is expected to continue to decline.
Precision Machinery (-5.7%→-11.4%) {0.6%}
Spending will continue to increase in medical
instruments. A small increase is also expected inclocking & measuring instruments. In contrast,
spending in semiconductor equipment will fall
substantially due to difficult market conditions.
Overall, capital spending is slated to fall more
sharply for the entire industry.
EnergyElectric Power (-9.8%→-8.8%) {13.5%}
Investment is restrained for power source development works related to thermal power plants,
largely due to falling demand for electricity.
Furthermore, improvement works and distribution facilities will be cut back, while a series ofinvestments in the wholesale power supply business have been completed. Thus, capital spending will continue to decline in the industry as awhole.
Gas (-15.3%→3.6%) {1.3%}
Although spending by specialized LNG producers will continue to decline following the completion of a series of investments, spending is
expected to increase in city gas, led by the development of LNG bases and supply facilities.
As heat supply and others will maintain the levelof the previous year thanks to the construction ofsome new plants, the gas industry will experience the first rise in capital spending in sevenyears.
Petroleum (34.7%→49.5%) {0.8%}
In addition to investment for environmental protection in refineries, such as the desulfurizationof light oil, spending in distribution facilities is
expected to increase, mainly for self-service
filling stations, resulting in the second consecutive increase in capital spending for the industry
as a whole.

Non-Manufacturing Industries, excluding
EnergyLeasing (2.8%→3.8%) {18.5%}
In the leasing industry, demand for IT equipment
and commercial equipment, among others, is
expected to increase.
Telecommunications & Information(-10.8%→-1.9%) {15.6%}
Despite healthy investment in fixed communications for broadband, spending will continue todecline in telecommunications due to controlled
investment in mobile telephones. Spending will
start to rise in information services. In broadcasting, spending will continue to rise thanks toinvestment for digitalization in broadcasting
equipment, as well as to new office construction.
All in all, the industry will see a smaller decline
in capital spending.
Railways (-20.5%→36.6%) {6.3%}
A substantial increase is planned for new line
construction and extension mainly in the Tokyo
metropolitan area. This, along with investments
related to the Shinkansen bullet train, will resultin a substantial increase in capital spending forthe industry as a whole.
Wholesale & Retail (-19.6%→3.0%) {5.3%}
In wholesale, spending will be cut for the fourthstraight year, as some of the investments related
to head offices will be completed. In retail,spending will decline in department stores due toa cool-off in investment for refurbishment, butwill continue to increase in convenience stores.
As the establishment of outlets by supermarkets
and do-it-yourself stores will flourish under theLarge-scale Retail Stores Law, total capitalspending will increase in wholesale & retail.

Services (-35.5%→-23.7%) {1.2%}
Capital spending in services will plummet for thesecond consecutive year, largely due to the completion of a large amusement park in the Tokyo
metropolitan area.
Warehousing & Transportation (58.3%→30.9%){1.6%}
With airport construction in full swing, the industry is expected to record a substantial increasein capital spending for the second consecutive
year.
Construction (-0.1%→-14.9%) {0.6%}
Curbs on capital spending will continue in general, particularly among general contractors.
Airlines (14.7%→-4.6%) {0.8%}
Spending on ground facilities will increase, butinvestment by airline companies themselves will
decline due to the utilization of leasing in adding
airplanes. Overall, capital spending will turndown for the whole industry.
Marine Transport (23.4%→-38.6%) {0.1%}
Capital spending will slump in reaction to ship
construction and acquisition in the previous year.
3.

Planned Capital Spending for FY2003

Planned capital spending for FY2003 for all industries shows a decline of 5.1%. However, inboth the manufacturing sector (down 3.9%) andthe non-manufacturing sector (down 5.3%),
many capital spending decisions remain to be
made.

Real Estate (-20.5%→7.0%) {4.3%}
Although train station area development projects
related to private railway companies are expected
to slow down, large-scale redevelopment projects in the Tokyo metropolitan area will progress in full swing for completion within
FY2002. With the establishment of new outlets
by retail stores, capital spending is expected toturn up in the real estate industry as a whole.

Development Bank of Japan Research Report/ No. 33

13Characteristics of Capital Spending by Industry[FY2001]

Figures indicate

Change on previous year in FY2001[FY2002]

Figures indicate

Change on previous year in FY2002

Share in FY2000 spending

Increase

-30

-20

-10

0

Food & beverages
−6.5

2.0

Share (%)

Manufacturing

Cement, ceramics & glass
−7.4

1.0
General machinery
−3.3
1.8

10

31.5

20

30

20

40

Non-ferrous metals

10.2
1.3

Electricalmachinery
−34.4

−9.7

Decrease

50 Change on
previous year
TextilesPaper & pulp
(%)
3.3
15.1
0.3
Chemical
8.1 0.9
Petroleum
4.0
34.7
Iron & steel 0.4
7.5
1.6

10

-50
0

Share (%)

-40

Manufacturing

Decrease-50
0Share in FY2001 spending

31.6

-30

10

Construction
−0.1

Gas
−15.3

1.3

1.7
68.4

Telecommunications &information technology

70

Wholesale & retail
3.0
5.1
Real estate
7.0
4.0

Railways
36.6
4.6

Airlines
−4.6
0.9

50

Non-manufacturingNon-manufacturing

60

−9.2

68.5

1.8

Marine transport
−38.6
0.2

Marine transport
23.4
0.2

Electric power
−9.8
14.7

Petroleum
49.5
0.5

12.1
5.5

40

4.5

50

50 Change on
previous year(%)

Automobiles

0.7

Airlines
14.7
Warehousing &0.7transportation
58.3
0.7
Other transportation
3.8
0.5

40

7.8

Construction−14.9

Railways
−20.5
5.3

30

Textiles1.5
0.3

Other transport equipment
Other
−10.7
manufacturing
0.4
−2.8

30

Real estate
−20.5

40

20

Electrical machinery
−8.7

20

Wholesale& retail
−19.6
5.7

0.7

10

Iron & steel
−18.8
1.9

0.6

Other transport equipment
20.0
0.3

−9.9
1.8

30

0

General machinery
Non-ferrous metals
−1.9
−40.5
2.0
1.6

Automobiles
1.1
5.1

Other manufacturing 0.6

-10

−24.9
1.0

Precision machinery−11.4
Precision machinery−5.7

Increase-20

Food & beverages−5.2
Paper & pulp2.1
Chemical
−22.5
−4.2
1.2
Cement, ceramics & glass 4.8

−5.6

10.3

-40

Electric power
−8.8
14.7

Warehousing &transportation
30.9
1.2
Other transportation
12.5
0.6

60
Gas
3.6
1.2

Telecommunications &information technology
−1.9

70

−10.8

15.8

16.2

80

80

Leasing
2.8
15.7

90

Other non-manufacturing
34.8
0.1

Services
100
-50

14

−35.5
2.2

-40

-30

-20

-10

0

10

Leasing
3.8
17.7

90

20

30

40

50

Services
−23.7
1.6
100
-50

-40

-30

Other non-manufacturing
37.4
0.2
-20

-10

0

10

20

All industries average

All industries average−9.3 %−0.6 %Development Bank of Japan Research Report/ No. 33

30

40

50

[FY2003]

Change on previous year in FY2003

Figures indicate

Share in FY2002 spending

Decrease

Manufacturing
−3.9

14.6

Share (%)

-50
0

-40

-30

-20

Increase-10

Food & beverages−14.3
Petroleum
1.2
−22.9
1.2
PrecisionmachineryNon-ferrous
metalsOther maunfacturing

20

−10.6
0.5
Construction
−10.3
0.4

20

30

40

50 Change on
pervious year

Real estate
−0.8
4.0

3.7
Other transport equipment
−15.7
0.1
Wholesale & retail
−5.7
4.7

Marine transport−28.9
0.2 Airlines
−52.1
0.0

Railways−40.5

5.1
Warehousing &transportation

30

10

TextilesPaper & pulp 13.6 (%)
Chemicals
1.7
0.1
1.2
0.5
Cement, ceramics & glass
2.7
18.3
Iron &
steel
0.3
Generalmachinery 15.8
Electrical−6.5
1.1
machinery
0.6
−1.7

−3.2
−11.0
0.3
0.2
Automobiles
−9.3
2.1

10

0

−42.4
3.3

Other
transportation
−16.6
0.4

Non-manufacturing

40

−5.3

Electric power
−3.4
28.1
50

Gas
2.3
3.4

60

85.4

Telecommunications& information
technology
−16.0

5.9
70

80
Leasing
5.1
28.7

90

100
-50

Other non-manufacturing
−7.0
0.2

Services
−19.4
0.9
-40

-30

-20

-10

0

10

20

30

40

50

All industries average−5.1 %Development Bank of Japan Research Report/ No. 33

15

4.

Investment Motives

Investment Motives in the Manufacturing and
Non-manufacturing Sectors for FY2002
Looking at the share of each category of investment motive for the manufacturing sector for
FY2002, there are increases in “maintenance andrepair,” “research & development” and “productdevelopment and upgrading” as well as a huge
drop in the share of “expansion of production
capacity.”In the non-manufacturing sector, the shareof “expansion of production capacity” has increased for the first time in three years with major contributions from railways, real estate andretail. In contrast, the share of “product development and upgrading” is falling.
Investment Motives in the Manufacturing
Sector’s “Materials” and “Processing &Assembly” Industries
We now look at the share of each category ofinvestment motive within the manufacturingsector, comparing the materials sub-sector withthe processing & assembly sub-sector. For thematerials sub-sector, the motives “maintenanceand repair” and “rationalization and labor saving” are traditionally high, whereas for the processing & assembly sub-sector, “product development and upgrading” is more important.
The characteristics of investment motives
for the materials industries in FY2002 are as
follows:
i. An increase in the share of “maintenance andrepair” in each of the industries (23.9%→27.2%),
becoming the most important investment motive
overall;ii. A diminished share of “rationalization andlabor saving,” falling for the third consecutive
year in industries such as paper & pulp andchemicals;iii. A substantial drop in the share of “expansionof production capacity” (27.2%→23.8%), especially in non-ferrous metals, paper & pulp andcement, ceramics & glass; andiv A considerable share of “research and development,” with increases in chemicals and otherindustries.
The significant trends for the processing &16

Development Bank of Japan Research Report/ No. 33

assembly sub-sector are as follows:
i. A diminished share of “expansion of production capacity” (27.3%→23.2%), with substantial
drops in electric machinery and transport equipment in particular;
ii. The largest share of “product development
and upgrading” in the sub-sector, rising for thethird consecutive year in industries such astransport equipment; andiii. A sizable share of “maintenance,” rising forthe second consecutive year in transport equipment in particular.
Shift in Investment Motives within the Manufacturing Sector
We now look at the change in the percentage shareof each category of investment motive for the
manufacturing sector. The share of “expansion of
production capacity” has declined largely due to a
substantial drop in the heavy-weighted electrodevices, mainly for semiconductor materials.
The share – but not the investment volume –of “product development and upgrading” hasincreased despite a decline in electric machinery,
being led by investment in transport equipmentfor new models (16.8%→17.6%).
For “rationalization and labor saving,” theshare remains unchanged, with rises in generalmachinery and other processing & assembly
industries being offset by falls in materials industries such as paper & pulp and chemicals(15.0%→15.0%).
The share of “research & development” hasincreased in the manufacturing sector as a whole(9.2%→10.3%), rising for the second consecutive year in both the materials (especially inchemicals including pharmaceuticals) and processing & assembly (especially in automobiles)
sub-sectors.
For “maintenance and repair,” the share has
increased in the materials sub-sector, particularly
in iron & steel and paper & pulp, despite thereduced amount of investment. As both the shareand amount have increased in the processing &assembly sub-sector, “maintenance and repair”
now accounts for a considerable part in capitalspending for the whole manufacturing sector(17.8%→19.7%).

Investment Motives
Total

Manufacturing(2,043 firms)

Materials

Non-Manufacturing

FY2001 FY2002 FY2001 FY2002 FY2001 FY2002
Actual Planned Actual Planned Actual Planned

Processing &Assembly
FY2001 FY2002
Actual Planned

FY2001 FY2002
Actual Planned

Expansion of
Production Capacity

40.1

41.2

27.4

24.0

27.2

23.8

27.3

23.2

46.2

48.7

Product Development
and Upgrading

12.3

10.4

16.8

17.6

5.6

6.3

24.3

24.6

10.1

7.3

Rationalization andLabor Saving

6.8

6.4

15.0

15.0

18.6

17.5

12.7

13.6

2.9

2.7

Research andDevelopment

3.9

4.0

9.2

10.3

7.1

9.2

10.8

11.4

1.4

1.3

Maintenance andRepairs

17.4

17.4

17.8

19.7

23.9

27.2

13.5

15.0

17.2

16.4

Others

19.5

20.5

13.8

13.4

17.7

15.9

11.3

12.2

22.2

23.6

Total

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Note: Figures are given as percentages.

5. Trends in Land Investment, by Principal
Business Sector
Actual Land Investment for FY2001
Actual land investment for FY2001 (based on
figures for the 1,675 firms that gave responses
regarding both FY2000 and FY2001) was down
4.1% compared with the previous year, the fifth
consecutive annual decline. In the manufacturingsector, land investment rose 9.1% due to purchases for plant sites and business reorganizationin chemicals and transport equipment. In nonmanufacturing, it dropped 7.3% from the previous year due to the completion of a series of investments in real estate for redevelopment andbusiness reorganization, although investments intransportation for airport sites reached their peak.
As a result, land investment accounted for 6.4%of total capital spending (4.7% in manufacturing,
7.0% in non-manufacturing).

ment accounts for 4.1% of total capital spending
planned for FY2002.)
It should be noted that there is a tendency
for large upward revisions in land investment
between the planning stage and actual implementation.
Planned Land Investment for FY2003
Planned land investment for FY2003 (based on
figures for the 1,097 firms that gave responses
regarding both FY2002 and FY2003) is down
56.8% from the previous year. (Land investment
accounts for 2.1% of total capital spending
planned for FY2003.) Planned land investment
for FY2003 is even more subject to revision thanis that for FY2002, however.

Planned Land Investment for FY2002
Planned land investment for FY2002 (based on
figures for the 2,066 firms that gave responses
regarding both FY2001 and FY2002) is down
33.8%, following the peaking of investment in
new airport sites in transportation. (Land invest-

Development Bank of Japan Research Report/ No. 33

17

Trends in Land Investment
FY2000FY2001
ActualPlanned(1,675 firms)

GrowthRate (%)
2001/2000

FY2001
FY2002
ActualPlanned
(2,066 firms)

GrowthRate (%)
2002/2001

FY2002
FY2003
ActualPlanned(1,097 firms)

GrowthRate (%)
2003/2002

Total Investment

138,612120,974-12.7

135,739

136,2110.3

64,85060,485Investment excluding Land130,600

113,292-13.3

127,286

130,613

2.6

61,93959,228

-4.4

8,012

7,682

-4.1

8,453

5,598

-33.8

2,911

1,257

-56.8

Investment in Land
Share of Land (%)

-6.7

5.8

6.4

6.2

4.1

4.5

2.1

39,50335,597-9.9

40,06837,608

-6.1

9,605

9,635

0.3

Investment excluding Land37,95533,907-10.7

38,11336,669

-3.8

9,249

9,604

3.8

Investment in Land

1,548

1,690

9.1

1,955

939

-52.0

356

31

-91.3

Manufacturing

Share of Land (%)

3.9

4.7

4.9

2.5

3.7

0.3

99,10985,377-13.9

95,671

98,603

3.1

55,24550,850-8.0

Investment excluding Land92,64579,384-14.3

89,173

93,944

5.4

52,69049,625-5.8

Investment in Land

6,464

5,993

-7.3

6,498

4,659

-28.3

2,555

1,225

-52.1

6.5

7.0

6.8

4.7

4.6

2.4

Non-Manufacturing

Share of Land (%)

Note: Monetary amounts are in 100 million yen.

Growth Rate of Total Investment in Land by All Industries

93

94

95

96

97

98

99

(FY)
2000 2001 2002 2003(%) 30
20

18.1

10
0

-20

-50

-14.8

-16.5

-11.6

-21.3

-24.5
-30.5

-30
-40

-4.1

-4.3

-11.1
-10

-40.0 -39.9
-43.4

-36.8
-38.2

-40.7 -41.0 -34.3-32.0 -31.5 -29.2
-33.8
-33.9

-42.5
-47.5 -47.9

-54.6

-60

-56.8
-66.6

-70
-80

Actual (Survey in August of the following year)
Planned (Survey in August of the same year)
Planned (Survey in August of the previous year)

18

-55.8

Development Bank of Japan Research Report/ No. 33

6. Capital Spending Abroad, by Principal
Business Sector
Capital spending abroad in all industries will rise
6.1% in FY2002 (based on figures for the 1,014
firms that gave responses regarding both FY2001
and FY2002). Investment is expected to increasein the EU (up 32.4%) and Asia (up 12.5%), butwill decline in the US (down 0.6%) and otherareas (down 15.1%).
The manufacturing sector accounts for
85.0% of the planned capital spending abroad(up 3.6%). In the materials sub-sector, capitalspending abroad will drop 7.1% as increased
investment in the EU and Asia in chemicals will
be more than offset by decreases in cement,
ceramics & glass and non-ferrous metals, largely due

to the slumping demand for IT in the US and thecompletion of new plants in Asia. Capitalspending abroad in the processing & assembly
sub-sector is expected to increase 7.5%, mainly
due to the establishment of joint ventures andplants in the EU and Asia in transport equipment.
In the non-manufacturing sector (up 22.3%),
capital spending is expected to increase, led bymarine transport and leasing, as well as bywholesale & retail with increased investment in
the US.
Note: “Capital spending abroad” by a company refers tocapital spending conducted overseas by either the company
itself or one of its overseas subsidiaries. (Here, an “overseas
subsidiary” of a company is an overseas firm for which thecompany holds at least 10% of the shares.)

Capital Spending Overseas, by Region

RegionCapitalUS
spending over- EU
seas
Asia
Others(1,014 firms) Total
Notes:

FY2001
6,152
1,793
3,450
1,348
12,742

Amount
Share
48.3
14.1
27.1
10.6
100.0

FY2002
6,117
2,374
3,880
1,144
13,516

Share
45.3
17.6
28.7
8.5
100.0

Change (%)
2002/2001
-0.6
32.4
12.5
-15.1
6.1

Monetary amounts are in 100 million yen.

Development Bank of Japan Research Report/ No. 33

19

86.5%. Overall, capital spending by foreignaffiliated firms will increase 15.2% in the entire
manufacturing sector. The non-manufacturingsector will see a 8.7% drop in capital spendingby foreign affiliates, with curbs on investment intelecommunications and information overwhelming an increase in leasing. Of the foreignaffiliated firms, the companies wholly owned byforeign capital (40 firms, accounting for 0.4% of
the companies covered by the survey) will see anincrease of 4.5% in domestic capital spending.
Planned capital spending by foreign-affiliatedfirms (73 firms with over one-third foreign ownership) for FY2003 is down 16.6% from the previous year.

7. Trends in Capital Spending byForeign-affiliated Firms, by Principal
Business Sector
Out of the 3,021 firms that responded to the survey for both FY2001 and FY2002, 132 are classified as foreign-affiliated firms (more than onethird foreign ownership). They account for 5.6%of total capital spending.
Planned capital spending by foreign-affiliatedfirms for FY2002 is 1.8% higher than in the previous year. As regards the manufacturing sector,
spending will continue to decline in electric machinery, down 21.2%. However, the heavyweighted transport equipment will increase
49.9%. The petroleum industry is also expected
to record a substantial growth in spending ofCapital Spending by Foreign-Affiliated Firms, by Principal Business Sector
Capital Spending
FY2000
Actual

FY2001
Actual

FY2001
Actual

FY2002
PlannedGrowth Rate (%)
FY2002
PlannedFY2003
PlannedComposi- Share oftion
All Firms(%)(%)
FY200201/00 02/01 03/02(114 firms)(132 firms)(73 firms)

7,769

7,289

12,18012,393

3,397

2,834

-6.2

1.8 -16.6

100.0

5.6

921

619

810

847

395

190

-32.8

4.5 -52.0

6.8

0.4

Manufacturing

4,696

4,621

5,319

6,130

1,832

1,423

-1.6

15.2 -22.3

49.5

9.2

Non-Manufacturing

3,073

2,669

6,861

6,263

1,565

1,412

-13.1

-8.7

-9.8

50.5

4.1

Materials

1,257

1,387

1,758

1,779

421

418

10.3

1.2

-0.6

14.4

8.8

Processing & Assembly

3,302

3,039

3,366

3,988

1,048

707

-8.0

18.5 -32.5

32.2

9.0

137

195

195

363

363

297

42.6

86.5 -18.2

2.9

1.0

3,073

2,669

6,861

6,263

1,565

1,412

-13.1

-8.7

50.5

5.2

Total
Wholly owned foreign firms(132 firms)

By sector

EnergyNon-Manufacturing
excluding Energy

Notes: Foreign-affiliated firms are firms with over one-third foreign ownership.
Monetary amounts are in 100 million yen.

20

Development Bank of Japan Research Report/ No. 33-9.8

manufacturing (down from 116.6% in FY2001 to
83.6% in FY2002 for all industries).

8. Capital Spending Cash Flow Ratio,
by Principal Business Sector
The ratio of capital spending to cash flow (netincome plus depreciation expenses) will fallfrom the previous year to one of the lowest levels
recorded so far in both manufacturing and non-Capital Spending Cash Flow Ratio(Unit:%)

Total
Manufacturing
Non-Manufacturing
Materials
Processing & Assembly
SubEnergy
sectorNon-Manufacturing
excluding Energy

Note:

9.

Revenue Growth(1,951(2,063
firms)
firms)
FY2001
FY2002
ActualForecast
-3.8
0.1
-5.8
0.3
-2.2
-0.1
-7.2
-0.4
-5.6
0.3
-2.4
-0.2
-2.3

Income (Ordinary)
GrowthCapital Spending/
Cash Flow Ratio

FY2001
Actual
-21.7
-36.9
-5.2
-31.6
-40.3
-5.6

FY2002
Forecast
24.0
46.7
6.6
14.6
71.8
-2.9

FY2001
Actual
116.6
126.7
112.3
101.2
159.5
83.5

FY2002
Forecast
83.6
61.6
99.1
60.0
62.3
84.6

-6.3

9.8

122.6

102.5

0.1

Capital Spending/Depreciation
Expenses Ratio
FY2001
FY2002
ActualForecast
109.0
113.3
96.8
94.7
116.1
123.9
98.5
86.2
97.9
100.9
102.9
105.9
118.9

128.2

Capital spending cash flow ratio = {capital spending ÷ (net income + depreciation expenses)} × 100.

Information Technology Investment,
by Principal Business Sector

Contents of the Survey
The survey concerns the investments related to
information aimed at improving the businessefficiency and productivity of firms (corresponding to any of the following four factors:“tangible fixed assets,” “intangible fixed assets,”“leasing contracts,” or “other expenses”). This is
the fifth survey on information technology investment since its inception in August 2000.
Actual IT Investment in FY2001
Investment in information technology in
FY2001, based on the 1,465 firms that responded
to the survey for both FY2000 and FY2001, increased in both the manufacturing sector (up8.0%) and the non-manufacturing sector (up6.1%), resulting in a 6.7% increase for all industries. In the manufacturing sector, many industries invested in production and inventory management systems, customer management andsales support. In the non-manufacturing sector,
retail and transportation, including airlines andrailways, were major contributors to the increase,
as well as the heavy-weighted electric powerindustry.
Planned IT Investment for FY2002
Planned investment in information technology for FY2002, based on the 1,706 firms that
responded to the survey for both FY2001 andFY2002, is expected to increase in both the
manufacturing sector (up 11.9%) and the nonmanufacturing sector (up 1.3%), leading to an
overall increase of 4.8%. By sector, investment
in manufacturing is expected to continue to increase despite an expected decline in capitalspending overall, led by steady investment inproduction and inventory management systems,
customer management and sales support. In the
non-manufacturing sector, investment in IT willcontinue to increase in retail and railways, but is
expected to decline in electric power and airlines,
following the large investments made in the previous year.

Revisions to IT Investment
In comparison with the previous survey of FebDevelopment Bank of Japan Research Report/ No. 33

21

ruary 2002, actual investment in information
technology for FY2001 was revised downwards
in both the manufacturing sector (down 2.3%)
and the non-manufacturing sector (down 13.2%),
leading to an overall downward revision of 9.9%.
On the other hand, planned investment for

FY2002 was revised upwards in both the manufacturing sector (up 4.2%) and the nonmanufacturing sector (up 6.1%), leading to an
overall upward revision of 5.5%.

Overview of IT Investment (actual figures for FY2001)
Growth Rate (%)
Industrial Sector(1,465 firms)

Amount of IT Investment(%)

Change in IT
Investment

Change inCapitalSpending

Share of IT Investment(%)

IT Investment/
Capital Spending(%)

FY2000
Actual

FY2001
Actual2001/2000

2001/2000

FY2000
Actual

FY2001
PlannedFY2000
Actual

FY2001
Actual

Total

8,934

9,537

6.7

-10.3

100.0

100.0

7.8

9.3

Manufacturing

2,957

3,195

8.0

-2.5

33.1

33.5

10.9

12.1

5,977

6,342

6.1

-12.7

66.9

66.5

6.9

8.3

Non-manufacturing

Note: Monetary amounts are in 100 million yen.

Overview of IT Investment (planned figures for FY2002)
Growth Rate (%)
Industrial Sector(1,465 firms)

Amount of IT Investment(%)

Change in IT
Investment

Change inCapitalSpending

Share of IT Investment(%)

IT Investment/
Capital Spending(%)

FY2001
Actual

FY2002
Planned

2002/2001

2002/2001

FY2001
Actual

FY2002
PlannedFY2001
Actual

FY2002
PlannedTotal

10,177

10,667

4.8

-1.3

100.0

100.0

9.2

9.8

Manufacturing

3,403

3,808

11.9

-4.7

33.4

35.7

12.3

14.4

Non-manufacturing

6,774

6,859

1.3

-0.2

66.6

64.3

8.2

8.3

Note: Monetary amounts are in 100 million yen.

Revision to IT Investment

Industrial
Sector

FY2001, Actual
IT Investment(1,471 firms)

FY2002, Planned
IT Investment(1,107 firms)
Revision

Feb. 2002
Aug. 2002(%)

Revision
Feb. 2002

Aug. 2002

(%)

Total

10,068

9,067

-9.9

5,430

5,729

5.5

Manufacturing

3,008

2,938

-2.3

1,593

1,659

4.2

Non-manufacturing

7,060

6,129

-13.2

3,837

4,069

6.1

Note: Monetary amounts are in 100 million yen.

22

Development Bank of Japan Research Report/ No. 33

Components of IT Investment(actual FY2001)
Other expeses
14.1%

T angible
fixed assets
31.5%

Intangible
fixed assets
33.4%

Other expenses
14.3%

T angible
fixed assets
27.7%

Intangible
fixed assets
35.0%

Lease contract
amounts
20.9%

Note:

Components of IT Investment(planned FY2002)

Lease contract
amounts
23.0%

The charts show distribution of the 1,706 firms that responded to the survey both in FY2001 and FY2002.

Development Bank of Japan Research Report/ No. 33

23

List of Back Numbers (Including JDB Research Report)
No. 33 Survey on Planned Capital Spending for Fiscal Years 2001, 2002 and 2003 (this issue)
No. 32 Behavior Trends of Japanese Banks toward the Corporate Sector and Their Impact on the Economy, October 2002
No. 31 Microstructure of Investment and Employment Dynamics: Stylized Facts of Factor Adjustment
Based on Listed Company Data, October 2002
No. 30 Recent Trends in the Japanese Economy: Globalization and the Japanese Economy, August 2002
No. 29 Corporate Financing Trends in Recent Years: Fund Shortages and Repayment Burden, August
2002
No. 28 Urban Renewal and Resource Recycling: For the Creation of a Resource Recycling Society, July
2002
No. 27 Labor’s Share and the Adjustment of Wages and Employment, June 2002
No. 26 Survey on Planned Capital Spending for Fiscal Years 2001 and 2002, May 2002
No. 25 Environmental Information Policy and Utilization of Information Technology: Toward a Shift inEnvironmental Policy Paradigm, March 2002
No. 24 The Changing Structure of Trade in Japan and Its Impact: With the Focus on Trade in Information Technology (IT) Goods, March 2002
No. 23 Microstructure of Persistent ROA Decline in the Japanese Corporate Sector: Inter-company
Disparties and Investment Strategies, March 2002
No. 22 Recent Trends in the Japanese Economy: The Japanese Economy under Deflation and Prospects
of Evolution, February 2002
No. 21 Survey on Planned Capital Spending for Fiscal Years 2000, 2001 and 2002, December 2001
No. 20 Current Situation and Challenges for Cable Television in the Broadband Era, October 2001
No. 19 Recent Trends in the Japanese Economy: The Japanese Economy under Deflation, August 2001
No. 18 Introduction of a Home Appliance Recycling System: Effects & Prospects: Progress towards
Utilisation of Recycling Infrastructure, June 2001
No. 17 Survey on Planned Capital Spending for Fiscal Years 2000 and 2001, June 2001
No. 16 Revitalization of Middle-aged and Elderly Workers in Japan’s Labor Markets: Requiring the
Expansion of the Vocational Training Functions, March 2001
No. 15 Risk-Averting Portfolio Trends of Japanese Households, March 2001
No. 14 Consumption Demand Trends and the Structure of Supply: Focus on Retail Industry Supply
Behavior, March 2001
No. 13 Recent Trends in the Japanese Economy: Weakness of Current Economic Recovery and Its
Background, March 2001
No. 12 Empirical Reassessment of Japanese Corporate Investment Behavior: Features and Changes
since the 1980s, based on Micro-level Panel Data, March 2001
No. 11 Survey on Planned Capital Spending for Fiscal Years 1999, 2000 and 2001, October 2000
No. 10 Job Creation and Job Destruction in Japan, 1978-1998: An Empirical Analysis Based on Enterprise Data, September 2000
No. 9

Recent Trends in the Japanese Economy: Information Technology and the Economy, September
2000

No. 8

Trend of International Reorganization Affecting the Japanese Automobile and Auto Parts Industries, June 2000

No. 7

Survey on Planned Capital Spending for Fiscal Years 1999 and 2000, June 2000

No. 6

Current Status and Future Perspective of the Japanese Remediation Industry: Technology andMarket for Underground Remediation, May 2000

No. 5

Recent Trends in the Japanese Economy: The 1990s in Retrospect, March 2000

No. 4

Destabilized Consumption and the Post-bubble Consumer Environment, February 2000

No. 3

The Slump in Plant and Equipment Investment in the 1990s: Focusing on Lowered Expectations,the Debt Burden and Other Structural Factors, January 2000

No. 2

Survey on Planned Capital Spending for Fiscal Years 1998, 1999 and 2000, November 1999

No. 1

Corporate Strategies in Japan’s Semiconductor Industry: Implications of Development in Other
Asian Countries, November 1999

JDB Research Report
No. 96 Recent Trends in the Japanese Economy: Focused on Fixed Investment and Capital Stock,
August 1999
No. 95 Efforts to Protect the Natural Environment in the United States and Germany: Environmental
Mitigation and Biotope Conservation, July 1999
No. 94 Survey on Planned Capital Spending for Fiscal Years 1998 and 1999, June 1999
No. 93 Towards the realization of ‘environmental partnership’: A survey of Japan’s environmental NPO
sector through comparison with Germany, June 1999
No. 92 The Impact of Demographic Changes on Consumption and Savings, March 1999
No. 91 Recent Research and Development Trends in Japanese Enterprises: Technology Fusion, March
1999
No. 90 Recent Trends in the Japanese Economy: Prolonged Balance Sheet Adjustment, January 1999
No. 89 Impact of Asset Price Fluctuations on Household and Corporate Behavior: A Comparison between Japan and the U.S., December 1998
No. 88 Survey on Planned Capital Spending for Fiscal Years 1997, 1998, and 1999, December 1998
No. 87 Foreign Exchange Rate Fluctuations and Changes in the Input-Output Structure, November 1998
No. 86 Structural Changes in Unemployment of Japan: An Approach from Labor Flow, November 1998
No. 85 Recent Trends in the Japanese Economy: Characteristics of the Current Recession, August 1998
No. 84 R&D Stock and Trade Structure in Japan, August 1998
No. 83 Survey on Planned Capital Spending for Fiscal Years 1997 and 1998, August 1998
No. 82 The Significance, Potential, and Problems of DNA Analysis Research: Establishing Public Acceptance is Essential, May 1998
No. 81 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996, 1997
and 1998 Conducted in August 1997, March 1998
No. 80 Recent Trends in the Japanese Economy: Growth Base of the Japanese Economy, January 1998
No. 79 Information Appliances: The Strength of Japanese Companies and Tasks for the Future, January
1998
No. 78 Challenges and Outlook for the Japanese Machinery Industries: Impact of ISO14000 Series andEnvironmental Cost, January 1998
No. 77 Current Conditions and Issues of Computerization in the Health Care Industry: For the Construction of a Health Care Information Network, January 1998

No. 76 Household Consumption and Saving in Japan, December 1997
No. 75 The Direction of Japanese Distribution System Reforms: Strengthening the Infrastructure to
Support Diverse Consumer Choices, November 1997
No. 74 Foreign Direct Investments by Japanese Manufacturing Industries and Their Effects on International Trade, October 1997
No. 73 The Impact of the Changing Trade Structure on the Japanese Economy: With Special Focus on
the Effects on Productivity and Employment, October 1997
No. 72 An Analysis of Foreign Direct Investment and Foreign Affiliates in Japan, August 1997
No. 71 Recent Trends in the Japanese Economy: Stock Replacement and New Demand as Aspects of
Economic Recovery, August 1997
No. 70 Corporate Fundraising: An International Comparison, June 1997
No. 69 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and1997 Conducted in February 1997, May 1997
No. 68 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and1997 Conducted in August 1996, August 1997
No. 67 An International Comparison of Corporate Investment Behavior: Empirical Analysis Using Firm
Data from Japan, France and the US, April 1997
No. 66 Housing in the National Capital: Analysis of the Market for Housing using Micro Data, March
1997
No. 65 The Environment for Locating Business Operations in Major East Asian Cities, January 1997
No. 64 Direction of Reconstruction of Business Strategy in the Chemical Industry, January 1997
No. 63 Reflection on Discussions Concerning Regulation of the Electric Power Industry: Deregulationof the Electric Power Industry in Japan and Implication of Experiences in the United States, December 1996
No. 62 Current Status and Future Perspective of the Japanese Semiconductor Industry, November 1996
No. 61 A Breakthrough for the Japanese Software Industry?: Responsiveness to Users’ Needs is the key,
October 1996
No. 60 Recent Trends in the Japanese Economy Focusing on the Characteristics and Sustainability of
the Current Economic Recovery, September 1996
No. 59 Analysis of the Primary Causes and Economic Effects of Information: Related investment in the
United States and Trends in Japan, August 1996
No. 58 Selected Summaries of Research Reports: Published in FY1995, June 1996
No. 57 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1995 and1996 Conducted in February 1996, May 1996
No. 56 Recent Trends in the Japanese Economy, May 1996
No. 55 Issues Concerning the Competitiveness of the Japanese Steel Industry, February 1996
No. 54 Changes in the Financial Environment and the Real Economy, January 1996
No. 53 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994, 1995
and 1996 Conducted in August 1995, October 1995
No. 52 Current Economic Trends: Focusing on the Appreciation of the Yen and its Effects, October
1995
No. 51 Problems Concerning the International Competitiveness of the Petrochemical Industry, October
1995

No. 50 An Economic Approach to International Competitiveness, October 1995
No. 49 Selected Summaries of Research Reports Published in FY1994, July 1995
No. 48 Strategies for Improving the Efficiency of the Japanese Physical Distribution System: Part 2,
July 1995
No. 47 Issues on International Competitive Strength of the Auto Industry, June 1995
No. 46 Problems Concerning the International Competitiveness of the Electronics and Electric Machinery Industry, June 1995
No. 45 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994 and1995 Conducted in March 1995, June 1995
No. 44 Strategies for Improving the Efficiency of the Japanese Physical Distribution System, March
1995
No. 43 Capital Spending Recovery Scenario Cycle and Structure, August 1994
No. 42 Progress of International Joint Development between Industrialized Countries on the Private
Level, May 1994
No. 41 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993, 1994
and 1995 Conducted in August 1994 , November 1994
No. 40 Selected Summaries of Research Reports Published in FY1993, June 1994
No. 39 Recent Trends in Japan’s Foreign Accounts, April 1994
No. 38 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993 and1994 Conducted in March 1994, April 1994
No. 37 Economic Zones and East Asia Prospect for Economic Activity Oriented Market Integration,
December 1993
No. 36 Japanese Corporate Responses to Global Environmental Issues, December 1993
No. 35 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992, 1993
and 1994 Conducted in August 1993, September 1993
No. 34 Structure of Profit to Capital in the Manufacturing Industry, September 1993
No. 33 Comparison of the Japanese and The U.S. Labor Markets, October 1992
No. 32 The Relative Competitiveness of U.S., German, and Japanese Manufacturing, March 1993
No. 31 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992 and1993 Conducted in March 1993, April 1993
No. 30 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991, 1992
and 1993 Conducted in August 1992, December 1992
No. 29 Flow of Funds in the 80s and Future Corporate Finance in Japan, November 1992
No. 28 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991 and1992 Conducted in February 1992, April 1992
No. 27 An Analysis of Foreign Direct Investment in Japan, March 1992
No. 26 Projection of Japan's Trade Surplus in 1995: Analysis of Japan's Trade Structure in the 80s, February 1992
No. 25 Intra-Industry Trade and Dynamic Development of The World Economy, November 1991
No. 24 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990, 1991
and 1992 Conducted in August 1991, September 1991
No. 23 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990 and1991 Conducted in February 1991, March 1991

No. 22 Trends of the Petrochemical Industry and its Marketplace in East Asia, March 1991
No. 21 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989, 1990
and 1991 Conducted in August 1990, September 1990
No. 20 Deepening Economic Linkages in The Pacific Basin Region: Trade, Foreign Direct Investment
and Technology, September 1990
No. 19 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989 and1990 Conducted in February 1990, March 1990
No. 18 Petrochemicals In Japan, The US, and Korea an Assessment of Economic Efficiency, February
1990
No. 17 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1988, 1989
and 1990 Conducted in August 1989, October 1989
No. 16 Impact of the EC Unification on Japan’s Automobile and Electronics Industries, August 1989
No. 15 Industrial and Trade Structures and the International Competitiveness of Asia’s Newly Industrializing Economies, August 1989
No. 14 The Japan Development Bank Reports on Capital Investment Spending: Survey for Fiscal Years
1988 and 1989 Conducted in February 1989, March 1989
No. 13 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1987, 1988
and 1989 Conducted in August 1988, September 1988
No. 12 Growing Foreign Investors’ Activities and the Future of Internationalization, September 1988
No. 11 Futures Tasks and Prospects for the Japanese Machine-Tool Industry, July 1988
No. 10 International Division of Labor in the Machine Industries Among Japan, Asia’s NICs and ASEAN Countries, June 1988
No. 9

Trends of the Petrochemical Industry and its Marketplace in East Asia around Japan, May 1988

No. 8

The International Competitiveness of Japan and U.S. in High Technology Industries, April 1988

No. 7

The Japan Development Bank Reports on Private Fixed Investment in Japan, March 1988

No. 6

Economic Projections of the Japan’s Economy to the Year 2000, February 1988

No. 5

The Japan Development Bank Reports on Private Fixed Investment in Japan, September 1987

No. 4

Current Trends in the Japanese Auto Parts Industry in Overseas Production, July 1987

No. 3

Current Moves for Foreign Direct Investment into Japan, May 1987

No. 2

Overseas Direct Investments by Japanese Corporations, May 1987

No. 1

Current U.S. Consumption Trends, May 1987