Development Bank of Japan
Research Report
No. 43

Survey on Planned Capital Spending
for Fiscal Years 2002, 2003 and 2004
(Conducted in August 2003)

November 2003

Economic and Industrial Research Department
Development Bank of Japan

This report was originally published in Japanese as Chosa No. 58
in October 2003.

Contents
I

Summary ........................................................................................................................................ 1

II

Outline ............................................................................................................................................ 3

III Survey Results................................................................................................................................ 5
1. Overall Condition (Actual Capital Spending for FY2002 and Planned Capital Spending for
FY2003 and FY2004) .............................................................................................................. 5
2. Characteristics of Capital Spending by Industry.................................................................... 10
3. Investment Motives................................................................................................................ 13
4. Land Investment..................................................................................................................... 14
5. Capital Spending by Foreign-affiliated Firms ....................................................................... 15
6. Capital Spending Abroad....................................................................................................... 16
7. Information Technology Investment...................................................................................... 17
8. Research & Development Expenditure.................................................................................. 17
Appendix................................................................................................................................ 19
Charts ..................................................................................................................................... 22

Development Bank of Japan Research Report/ No. 43iIncrease in Capital Spending for the First Time in Three Years,
Led by the Manufacturing Sector:
More selective and focused investment targeting consumer demand

I Summary
1. Total industry planned capital spending for
FY2003 increased for the first time in three
years (up 4.9%), led by that in the manufacturing sector.
2. In the manufacturing sector, planned capitalspending increased substantially from the previous fiscal year in most industries, including
electric machinery and automobiles, which occupy large proportions, leading to an increase intotal for the first time in three years (up 16.2%),
but the spending was low in comparison withpast years. In electric machinery, positive investments are scheduled for end products suchas audio-visual equipment and for devices suchas semiconductors and flat panel displays, reflecting increased demand for digital home electronics. Large increases are planned in precision
machinery (for semiconductor processing),
non-ferrous metals (for 300 mm silicon wafer
production equipment), and cement, ceramics &glass (for larger glass substrates for liquid crystal displays), led by investments in sectors
related to the processing of electric parts anddevices. Pharmaceuticals and electronic materials are major contributors to increases in planned
capital investment by the chemicals industry.
Replacement
investment
will
increase—including in the automobile industry,for production of new models and improvementof production efficiency; and in the iron & steel
industry, for blast furnace refurbishment—inresponse to steady returns on sales.
In the non-manufacturing sector, planned
capital spending decreased both in real estate,
due to the completion of a large-scale urban redevelopment project, and in electric power, due
to continued restraints on investment, but increased in leasing, where demand is expected to
expand; in telecommunications and information

for next-generation mobile phones, fiber-optic
networks, and terrestrial digital broadcasting;and in retail, due to accelerated establishment of
new outlets. The mix of positive and negative
growth will result in little change from the previous year in total capital spending in the
non-manufacturing sector (up 0.2%).
3. Current profit growth is expected in both the
manufacturing sector and the non-manufacturingsector, despite low sales. Planned capital spending, however, is at a level well below projectedcash flow. Cash flow will be applied to debt repayment, and capital spending will be carriedout with investment efficiency in mind.
4. Research & development expenditure (newsurvey item) increased in both the manufacturing sector (up 4.9%) and the non-manufacturingsector (up 2.7%), leading to an overall increase(up 4.8%). In the manufacturing sector, electricmachinery, which occupies a large proportion,
indicated large growth, mainly in devices andIT-related equipment, leading to increased overall research & development expenditure in the
sector.
5. Cases of IT-related industries leading others
in terms of total capital spending were seen also
in the capital spending growth in FY2000,
FY1995, and FY1984. However, this time thesurvey shows that investment is more selective
and focused, and that in sectors that are clearlyleading in terms of technology, such as devices,
processing equipment, and materials, the investment is expanding in line with the individualcompanies’ original strategies. An important
point is that not only IT-related sectors, such as
digital home electronics, telecommunications
and broadcasting, but also other sectors, such as
automobiles and supermarkets, are increasing
investment to meet rising consumer demand.
Planned capital spending increased in mostDevelopment Bank of Japan Research Report/ No. 43

1manufacturing sectors for FY2003, but this is attributed to a cyclical effect, and a deep-seated undercurrent of restraint in domestic investment persists. This point must be considered when estimating the investment trend for the next few years.

2

Development Bank of Japan Research Report/ No. 43

IIOutlineObjectives

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

In this survey, “capital spending” refers to domestic investment in tangible fixed assets of
one’s own corporation, such as 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 subdivision in thereal estate industry). Accordingly, intangible
fixed assets are excluded, as are capital spending
abroad and investment in subsidiaries/affiliatedfirms.
However, ancillary surveys on “capitalspending abroad,” “information technology investment” and “research & development expenditure” cover a wider range of investment.
Survey Methods

The survey was conducted by means of questionnaire (sent to individual firms and followed
up by telephone interviews when necessary).
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).

excluding agriculture, forestry, finance and insurance 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, 2003. Most of the responses to thequestionnaire were obtained in August.
Contents of the Survey(i)Actual capital spending in FY2002 andplanned capital spending for FY2003 andFY2004(ii) Details of individual construction projects
for each of the above years(iii) Actual revenue and expenditure in
FY2002 and estimated revenue and expenditure for FY2003(iv) Investment motives in FY2002 andFY2003(v) Land investment in FY2002, FY2003 andFY2004(vi) Capital spending abroad for FY2002 andFY2003(vii) Information technology investment in
FY2002 and FY2003(viii) Research & development expenditure in
FY2002 and FY2003
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 on capital spending trends.

Target Firms

This survey covers all private firms in Japan’smajor industries capitalized at ¥1 billion or more,

Principal Business Classification
Investment-specific Classification

No. of Firms
Targeted
3,654
4,381

No. of Firms Giving
Valid Responses
2,966
3,610

Proportion of
Valid Responses
81.2%
82.4%

Development Bank of Japan Research Report/ No. 43

3

On the Totals

Industrial classification
There are two types of industrial classifications:principal business classification and investment-specific classification. The former classifies and totals the companies’ responses basedon the main business interest of each company,
whereas the latter classifies and totals theamount of investment for each business sector in
a company’s response according to industrial
sector.
Although the investment-specific classifi-

cation is used in principle for the analysis of theamount and motives of capital spending, theprincipal business classification is adopted inother cases.
Timing of the survey and years covered
The survey is conducted twice a year, in Augustand in February. Since each fiscal year is surveyed five times until planned investments arematerialized, the results reveal business sentiments in detail, for example, through the extent
to which planned investments have been modified.

Targeted FY
2000
2001
2002
Timing of survey
August 2001
ActualModified plan
Plan for next FY
February 2002
Estimate
Initial plan
August 2002
ActualModified plan
February 2003
Estimate
August 2003
ActualNote: From 2004, the survey will be conducted in June and in November.

4

Development Bank of Japan Research Report/ No. 43

2003

2004

Plan for next FY
Initial plan
Modified plan

Plan for next FY

III Survey Results
1.

Overall Condition

Capital Spending
FY2002 (Actual)

FY2003（Planned）

FY2004（Planned）(2,737 firms)(2,966 firms)(1,436 firms)

GrowthGrowthGrowth

FY2001

FY2002Rate (%)

FY2002

FY2003Rate (%)

FY2003

FY2004Rate (%)

ActualActual2002/2001

ActualPlanned

2003/2002

PlannedPlanned

2004/2003

Total

20,851.2

18,713.8-10.3

19,535.7

20,499.6

4.98,144.7

7,645.8-6.1

Manufacturing

6,662.3

5,586.1-16.2

5,816.0

6,756.1

16.2

1,352.6

1,203.5-11.0

Non-manufacturing

14,188.9

13,127.7-7.5

13,719.7

13,743.5

0.2

6,792.1

6,442.3-5.1

Note: Monetary amounts are in billion yen.

Comparison with the February 2003 Survey (Revision Rate)
FY2002 (Actual)

FY2003 (Planned)

Total

-6.7

0.5

Manufacturing

-5.0

8.2

Non-manufacturing

-7.4

-2.8

Notes: 1. Figures are given as percentages.
2. Revision Rate = {(Aug. 2003 survey)/(Feb. 2003 survey) - 1} × 100

Growth in Capital Spending
30
Total
ManufacturingNon-manufacturing

%

20
10
0
-10
-20
-30
86

87

88

89

90

91

92

93

94

95

96

97

98

99 2000 2001 2002 2003 FY(Planned)

Note: Actual data for August until FY2002.

Development Bank of Japan Research Report/ No. 43

5(1) Actual capital spending for FY2002
Actual capital spending continued to decrease
substantially in FY2002, in both the manufacturing sector (down 16.2%) and thenon-manufacturing sector (down 7.5%), leading
to an overall decrease for the second consecutive
year (down 10.3%), and double-digit negative
growth for the first time in nine years (all figures
are based on construction). The level of actual
capital spending is normally lower than the levelof estimated capital spending, but the size ofdownward revision in capital spending in
FY2002 (down 6.7%) was relatively large, basedon firms which responded to the survey in both
February 2003 and August 2003.
(2) Planned capital spending for FY2003
Planned capital spending in industry overall for
FY2003 increased for the first time in three years(up 4.9%), due almost entirely to increases in the
manufacturing sector, as the non-manufacturingsector’s planned amounts were relatively unchanged.
Manufacturing sector
In the manufacturing sector, planned capitalspending increased substantially from the previous fiscal year in most industries, including electric machinery and automobiles, which occupy
large proportions, leading to an increase in total
for the first time in three years (up 16.2%), but the
spending was low in comparison with past years.
In electric machinery, positive investments arescheduled for end products such as audio-visualequipment and for devices such as semiconductors and flat panel displays, reflecting increased
demand for digital home electronics. Large increases are planned in precision machinery (forsemiconductor processing), non-ferrous metals(for 300 mm silicon wafer production equipment),
and cement, ceramics & glass (for larger glass
substrates for liquid crystal displays), led by investments in sectors related to the processing of

6

Development Bank of Japan Research Report/ No. 43

electric parts and devices. Pharmaceuticals andelectronic materials are major contributors to increases in planned capital investment by thechemicals industry. Replacement investment will
increase—including in the automobile industry,for production of new models and promotion of
production efficiency; and in the iron & steel industry, for blast furnace refurbishment—in response to steady returns on sales.
Non-manufacturing sector
In the non-manufacturing sector, planned capital spending decreased both in real estate, due tothe completion of a large-scale urban redevelopment project, and in electric power, due tocontinued restraints on investment, but increased in leasing, where demand is expected to
expand; in telecommunications and information
for next-generation mobile phones, fiber-optic
networks, and terrestrial digital broadcasting;and in retail, due to accelerated establishment of
new outlets. The mix of positive and negative
growth will result in little change from the previous year in total capital spending in the
non-manufacturing sector (up 0.2%).
Comparison with previous survey
Planned capital spending for FY2003 was revisedslightly upwards (up 0.5%) since the previous
survey (February 2003), based on firms which
responded to the survey in both February 2003
and August 2003. Relatively substantial upwardrevision is seen in the manufacturing sector (up8.2%), as well as in the period of capital spending
recovery, but in the non-manufacturing sector,
capital spending was revised downwards, reflecting restrained investment in electric power. However, the growth rate of capital spending for
FY2003 improved from –3.0% in the previous
survey, to +4.9% in this survey, because thedownward revision of capital spending for
FY2002 was large.

Capital Spending by Industry
Capital Spending

Growth Rate (%)

Component Rate (%)

1,436 firms

2,966 firms

2,966 firms

FY2002

FY2003

FY2003

FY2004

2002/2001 2003/2002 2004/2003 FY2002

FY2003

ActualPlannedPlannedPlannedActualPlannedTotal

19,535.7

20,499.6

8,144.7

7,645.8

-10.3

4.9

-6.1

100.0

100.0

Manufacturing5,816.0

6,756.1

1,352.6

1,203.5

-16.2

16.2

-11.0

29.8

33.0

Food and Beverages

383.4

399.5

60.0

57.0

-14.6

4.2

-5.0

2.0

1.9

Textiles

71.5

70.6

16.5

12.3

-13.4

-1.3

-25.7

0.4

0.3

Paper and Pulp

189.8

167.6

34.1

24.9

-19.7

-11.7

-26.8

1.0

0.8

Chemicals

875.4

973.8

163.3

151.4

-19.1

11.2

-7.3

4.5

4.8

Petroleum

158.8

174.4

53.3

61.9

32.3

9.8

16.1

0.8

0.9

Cement, Ceramics and Glass

170.4

201.8

18.6

18.6

-31.7

18.4

-0.2

0.9

1.0

Iron and Steel

332.4

406.3

208.9

158.3

-20.9

22.3

-24.2

1.7

2.0

Non-Ferrous Metals

186.1

230.2

67.4

61.3

-44.6

23.7

-9.0

1.0

1.1

General Machinery

369.7

420.8

62.3

59.9

-18.7

13.8

-3.9

1.9

2.1

Electric Machinery

1,323.6

1,618.5

332.8

290.9

-20.9

22.3

-12.6

6.8

7.9

875.7

1,113.6

241.2

204.9

-20.9

27.2

-15.0

4.5

5.4

109.6

143.0

11.3

8.2

-20.2

30.4

-27.2

0.6

0.7

Electro-Devices, etc.
Precision MachineryTransport Equipment

1,291.1

1,507.3

216.0

211.2

1.5

16.7

-2.3

6.6

7.4

Automobiles

1,224.8

1,427.4

193.9

192.6

1.2

16.5

-0.6

6.3

7.0

Other Manufacturing
Non-Manufacturing
Construction
Wholesale and Retail
Retail

354.2

442.4

108.1

87.7

-17.7

24.9

-18.8

1.8

2.2

13,719.7

13,743.5

6,792.1

6,442.3

-7.5

0.2

-5.1

70.2

67.0
0.6

155.6

121.7

44.7

35.1

6.0

-21.8

-21.5

0.8

1,033.8

1,052.4

330.3

320.1

2.8

1.8

-3.1

5.3

5.1

859.8

882.8

269.7

260.5

6.3

2.7

-3.4

4.4

4.3

Real Estate

829.0

724.8

387.9

235.7

-0.6

-12.6

-39.2

4.2

3.5

Transportation

1,976.7

2,022.9

874.0

760.1

15.8

2.3

-13.0

10.1

9.9

Electric Power and Gas

2,866.0

2,780.2

2,462.9

2,337.9

-19.0

-3.0

-5.1

14.7

13.6

Electric Power

2,619.7

2,511.6

2,231.2

2,124.0

-19.7

-4.1

-4.8

13.4

12.3

246.3

268.6

231.7

214.0

-9.6

9.1

-7.7

1.3

1.3

Gas
Telecom. and Information

2,744.9

2,802.8

452.7

423.3

-14.2

2.1

-6.5

14.1

13.7

Leasing

3,830.9

3,960.6

2,160.0

2,244.3

-4.4

3.4

3.9

19.6

19.3

Services

232.9

237.1

69.0

74.4

-31.6

1.8

7.7

1.2

1.2

Other Non-Manufacturing

49.9

41.0

10.5

11.5

20.5

-17.8

9.3

0.3

0.2

Notes: 1. Monetary amounts are in billion yen.
2. Other Manufacturing includes Publishing and Printing, Rubber, Metal Products and others.
3. Other Non-manufacturing includes Fishing, Mining and others.

Development Bank of Japan Research Report/ No. 43

7

Projection of Profits and Capital Spending Cash Flow Ratio (by Principal Business Sector)
Revenue Growth

Income (Ordinary)

Capital Spending/Cash Flow

GrowthRatio

Capital Spending/Depreciation
Expenses Ratio(1,846 firms)(2,030 firms)

FY2002

FY2003

FY2002

FY2003

FY2002

FY2003

FY2002

FY2003

ActualPlannedActualPlannedActualPlannedActualPlanned

Total

0.0

-0.3

30.6

8.1

90.5

75.8

101.1

109.0

Manufacturing

2.3

-0.4

50.7

9.8

68.8

60.2

86.9

102.4

Non-manufacturing

-1.9

-0.1

14.8

6.0

104.0

86.4

108.4

112.4

Notes: 1. Figures are given as percentages.
2. Capital spending cash flow ratio = {capital spending ÷ (net income + depreciation expenses)} × 100

Trend of Capital Spending Cash Flow Ratio in August Survey
Projected ratio for current fiscal year

Actual ratio in previous fiscal year

FY

Survey
month

1989

89/8

124.0

102.0

146.5

90/8

122.3

100.1

139.4

1990

90/8

130.9

112.9

145.4

91/8

125.9

104.8

143.2

1991

91/8

129.0

102.5

151.6

92/8

131.9

112.8

150.3

1992

92/8

128.1

101.3

152.4

93/8

130.9

105.7

148.5

1993

93/8

115.6

90.5

131.4

94/8

128.5

90.4

155.1

1994

94/8

118.0

80.8

144.2

95/8

120.7

79.9

147.7

1995

95/8

114.1

78.7

138.3

96/8

111.1

77.8

138.8

1996

96/8

112.4

79.1

139.4

97/8

114.4

80.4

139.7

1997

97/8

107.9

78.6

130.1

98/8

114.7

84.4

145.3

1998

98/8

104.0

76.8

129.8

99/8

123.9

95.3

145.0

1999

99/8

91.6

60.6

116.6

2000/8

111.1

77.1

138.1

2000

2000/8

96.4

67.3

120.7

2001/8

111.5

84.0

128.6

Total

Manufacturing

Surveymonth

NonManufacturing

Total

Manufacturing

Nonmanufacturing

2001

2001/8

90.8

75.3

100.2

2002/8

116.6

126.7

112.3

2002

2002/8

83.6

61.6

99.1

2003/8

90.5

68.8

104.0

2003

2003/8

75.8

60.2

86.4

Notes: 1. Figures are given as percentages.
2. Shaded figures represent results of the present survey.

Profits and capital spending cash flow ratio
Projected profits for FY2003 indicate a declineof 0.3% in revenue, which means a slight deterioration from the previous year, when revenue
stood almost unchanged from a year earlier.
Nonetheless, profits are slated to increase in bothmanufacturing and non-manufacturing despite
the decline in revenue. Profits for all industries
will record a healthy increase of 8.1%, although
this represents a substantial slowdown from the
30.6% rise in the previous year.
The ratio of capital spending to cash flow(net income plus depreciation expenses) will be
substantially lower than 100%: 60.2% in manufacturing and 86.4% in non-manufacturing according to planned investment for FY2003

8

Development Bank of Japan Research Report/ No. 43(68.8% for manufacturing and 104.0% for
non-manufacturing in FY2002 based on actual
figures). The planned figures tend to moveslightly upwards toward materialization. However, the expected ratio for FY2003 is evenlower than that for FY2002 calculated in lastAugust. This implies that firms are still curbing
capital spending in relation to cash flow.
Investment motives
Looking at the respective shares of different motives for planned investment for FY2003 in the
manufacturing sector, “product development andupgrading,” “rationalization and labor saving” and“research and development” will increase theirshares in many industries, especially in electricmachinery and transport equipment. The share of“others” will decrease, while the shares of “expansion of production capacity” and “maintenanceand repair” are expected to stay on a par.
Land investment
Planned land investment for FY2003 is substantially lower in both the manufacturing andnon-manufacturing sectors, down a massive
39.2% from the previous year. However, land
investment tends to be subject to substantial upward revision after the planning stage.
Capital spending by foreign-affiliated firms
The domestic capital spending by foreign-affiliated firms (121 firms owned one-thirdor over by foreign capital) is slated to increase
11.6% overall, as declines in retail and telecommunications will be more than offset by increases in manufacturing industries includingtransport equipment, electric machinery andchemicals. Foreign-affiliated firms now accountfor 5.6% of total capital spending in Japan.
(3) Ancillary Surveys for FY2003
Capital spending abroad
Capital spending abroad (including subsidiaries
and affiliates) in FY2003 is slated to increase
6.1% overall. Investment will rise 4.2% in the
manufacturing sector, which accounts for 80% of
the total spending. The non-manufacturing sector
is expected to see an increase of 13.7%.
By region, investment in the EU will turn to a
substantial decrease. Investment in the US is expected to turn down despite a continued increase in
manufacturing, due to heavy downward pressure
from non-manufacturing industries. Brisk investment in Asia will continue for both manufacturing
and non-manufacturing, particularly in China.
Information technology investment
Looking at planned information technology investment for FY2003 on the user side, a healthy
increase of 9.3% is expected overall, up 13.4% inmanufacturing and 6.4% in non-manufacturing.
Research & development expenditure
Planned research & development expenditure(new survey item) for FY2003 is up from a year

earlier in both the manufacturing sector (up4.9%) and the non-manufacturing sector (up2.7%), leading to an overall increase of 4.8%. In
the manufacturing sector, electric machinery,
which occupies a large proportion along withtransport equipment, indicates large growth,
mainly in electro-devices, parts and IT-related
equipment, leading to increased overall research& development expenditure in the sector.
(4) Highlights of This Survey (as regards
Planned Capital Spending for FY2003)
Cases of IT-related industries leading others interms of total capital spending were seen also inthe capital spending growth in FY2000, FY1995
and FY1984. However, this time the survey
shows that investment is more selective and focused, and that in sectors that are clearly leadingin terms of technology, such as devices, processing equipment, and materials, the investment
is expanding in line with the individual companies’ original strategies. An important point isthat not only IT-related sectors, such as digital
home electronics, telecommunications andbroadcasting, but also other sectors, such as
automobiles and supermarkets, are increasing
investment to meet rising consumer demand.
Current profit growth is expected in both the
manufacturing sector and the non-manufacturingsector, despite low sales. Planned capital spending, however, is at a level well below projectedcash flow. Planned capital spending increased inmost manufacturing sectors for FY2003, but thisis attributed to a cyclical effect, and a
deep-seated undercurrent of restraint in domestic
investment persists. This point must be considered when estimating the investment trend forthe next few years.
(5) Planned Capital Spending for FY2004
Planned capital spending for FY2004 shows an
overall decline of 6.1%, although uncertainty
surrounding many investment projects remains inboth the manufacturing (down 11.0%) andnon-manufacturing sectors (down 5.1%) as fewer
firms responded to the questions regarding theirplans for the year.

Development Bank of Japan Research Report/ No. 43

92.

Characteristics of Capital Spending by Industry[FY2002]

Figures indicate

Change on previous year in FY2002[FY2003]

Figures indicate

Change on previous year in FY2003

Share in FY2001 spending

Decrease-40-30

Increase

-20

-10

0

10

Food &
beverages Paper & pulp

−14.6
2.0

Manufacturing

Share (%)

−16.2
32.0

30

Decrease
40

50 Change on

−19.7
1.1

−13.4
0.3

Chemicals

−19.1
4.8

32.3
0.6

Iron & steel

−20.9
2.0

Non-ferrous metals
Electric
machinery

General machinery-30

Increase

-20

-10

0

Share (%)

−1.3
0.4 Paper & pulp
−11.7
1.0

Electric
machinery

22.3
6.8

Construction

−21.8
0.8

Wholesale & retail

−0.6
3.9

1.8
5.3

−12.6
4.2

40
Transportation

Transportation

2.3
10.1

15.8
8.2
50

50

Electric power

Electric power

−19.7
15.7

Non-manufacturingNon-manufacturing

24.9
1.8

Real estate

2.8
4.7

Real estate

60
Gas

−9.6
1.3

0.2
70.2

70

−4.1
13.4
60
Gas

9.1
1.3

70

Telecommunications & information

Telecommunications &information

2.1
14.1

−14.2
14.8
80

80

Leasing

Leasing

−4.4
17.1

90

−31.6
1.6
-40

-30

-20

-10

3.4
19.6

90

Services

10

20.5
0.3
Other manufacturing

30

10.3
0.3

Wholesale & retail

100
-50

Other transport equipment

Other transport equipment

6.0
0.6

40

9.8
Iron & steel
0.8
22.3 Non-ferrous metals
1.7
23.7
General machinery 1.0
13.8
1.9
Precision machinery

16.5
6.3

1.2
5.7
Construction

previousyear (%)

30.4
0.6

Automobiles

−17.7
2.0

50 Change on

Petroleum

Automobiles

Other manufacturing

40

11.2
4.5

18.4
0.9

10

30

Chemicals

Cement, ceramics & glass

20

−20.2
0.6

−7.5
68.0

20
4.2
2.0

Precision machinery

30

10

Food & beverages

16.2
29.8

−20.9
7.6

−18.7
2.1

20

-40

TextilesPetroleum

−31.7
1.1

−44.6
1.6

-50
0

previous year(%)

TextilesCement, ceramics & glass

10

20

Manufacturing-50
0Share in FY2002 spending0

Other non-manufacturing

Other non-manufacturing

Services

20.5
0.2

−17.8
0.3

1.8
1.2

10

20

30

40

50

100
-50

-40

-30

-20

-10

0

10

20

All industries average

All industries average−10.3%

4.9%

Development Bank of Japan Research Report/ No. 43

30

40

50

[FY2004]

Change on previous year in FY2004

Figures indicate

Share in FY2003 spending

Decrease
-50
0

-40

-30

-20

Increase
-10

0

10

Manufacturing

−25.7
0.2

Chemicals

Paper & pulp −7.3

−26.8
0.4

Share
(%)

−11.0
16.6

−24.2
2.6

−3.9
0.8

Non-ferrous
metals

−9.0
0.8

50

Other transport
equipment Wholesale & retail

Change onprevious year
(%)

0.7

0.2

−0.6
2.4

−27.2
0.1

−12.6
4.1
Other manufacturing

Construction

−18.8
1.3

−21.5
0.5

−3.1
4.1

−16.3
0.3

40

Electric machinery

Automobiles

Precision machinery

20

30

Cement, ceramics & glass
General machinery −0.2

2.0

Iron & steel

10

20

Food & beverages
Petroleum
−5.0
16.1
0.7

TextilesReal estate

−39.2
4.8

30

Transportation

−13.0
10.7

Non-manufacturing

40

−5.1

50

Electric power

−4.8
27.4

60

83.4

Gas

−7.7
2.8
Telecommunications &information

−6.5
5.6

70

80
Leasing

3.9
26.5
90

Services

7.7
0.8
100
-50

-40

-30

-20

-10

0

10

20

Other
non-manufacturing

9.3
0.1
30

40

50

All industries average−6.1 %Development Bank of Japan Research Report/ No. 43

11Trends and Features of Capital Spending for
FY2003, 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 FY2002 and FY2003. The
figures in curly brackets { } show the percentage
of total planned spending for FY2003 accounted
for by each industry.

cement. However, capital investment in the industry will turn to a double-digit increase thanks
to investments for larger glass substrates for liquid crystal displays, as well as to expected recovery from the severe cutbacks on spending in
the previous year.
Iron & Steel (-20.9% → 22.3%) {2.0%}
A substantial increase is on the way as investments continue for the repair of blast furnaces,
backed by rising demand in Asia.

Manufacturing
Food & Beverages (-14.6% → 4.2%) {1.9%}
Continued checks on spending related to the
production of dairy products will be more thanoffset by large-scale projects in beverage production and investment in fodder for the prevention of bovine spongiform encephalopathy(BSE), leading to an upturn in capital spending
in the industry as a whole.

Non-ferrous Metals (-44.6% → 23.7%) {1.1%}
Although subdued tone continues in spending
related to optical parts and fiber, capital spending in the industry as a whole is expected to turnup with investments for increased production of
300 mm silicon wafers, as well as for capacity
expansion and efficiency improvement in refining.

Paper & Pulp (-19.7% → -11.7%) {0.8%}
Some investments will continue in boilers for
power generation using wastes as fuel. However,capital investment is expected to decline for asecond consecutive year as investment has
peaked in recycled pulp production facilities.

General Machinery (-18.7% → 13.8%) {2.1%}
Some investments in head offices will be completed, but increased spending is expected in
office equipment and parts thanks to rising demand. On balance, the industry will see a double-digit increase in capital spending as a whole.

Chemicals (-19.1% → 11.2%) {4.8%}
Investment will turn up in pharmaceuticals,
backed by the construction of R&D facilities for
product development and plants for new products. Revitalized spending is also expected ingeneral chemicals for capacity buildup, as wellas in information processing and electronic materials including mobile phones and flat panel
displays. Overall, capital spending in the industry is expected to turn up.

Electric Machinery (-20.9% → 22.3%) {7.9%}
Backed by growing demand for digital homeelectronics, active investment is expected in end
products including audio-visual equipment aswell as in devices such as system LSIs, flash
memories and flat panel displays. As a result,capital spending in the industry will turn to a
substantial increase.

Petroleum (32.3% → 9.8%) {0.9%}
Although a respite in investment is expected inrefineries, capital spending in the industry willrise for the third consecutive year, as active investment will continue in distribution facilities
such as self-service filling stations.
Cement, Ceramics & Glass (-31.7% → 18.4%){1.0%}
Curbs on investment are expected to continue in

12

Development Bank of Japan Research Report/ No. 43

Precision Machinery (-20.2% → 30.4%){0.7%}
Spending will increase for the first time in three
years, led by semiconductor processing andmeasuring instruments.
Automobiles (1.2% → 16.5%) {7.0%}
On the heels of buoyant sales and profits, carmakers are expected to increase their investment
for the production of new models and improvement of production efficiency. Efforts forstrengthening management bases will be en-hanced as some manufacturers are investing incapacity expansion (including the rebuilding ofproduction facilities) and for the consolidationof domestic sales structure.
Non-manufacturing
Construction (6.0% → -21.8%) {0.6%}
As curbs on investment continue particularly
among general contractors, capital spending is
expected to decline in reaction to the acquisitionof assets in the previous year.
Wholesale & Retail (2.8% → 1.8%) {5.1%}
Department stores will curtail their spending, as
investments in new outlets and refurbishment
have been completed. Spending is also being
suppressed in new restaurants. Meanwhile, supermarkets still continue to establish new outlets.
On balance, the industry will see an increase incapital spending for a second straight year.
Real Estate (-0.6 → -12.6%) {3.5%}
The industry will experience a double-digit decline in capital spending with the completion oflarge-scale redevelopment projects in the Tokyo
metropolitan area.
Transportation (15.8% → 2.3%) {9.9%}
In railways, the construction of new lines andredoubling works will ease up. Spending willturn down in airlines as restrictive tone continues. In the meantime, airport construction is expected to make headway. Major logistics companies will lead increased spending for the construction of facilities and the replacement of vehicles to comply with emission controls. All inall, capital spending will continue to increase in
the industry.
Electric Power (-19.7% → -4.1%) {12.3%}
The nine major electric power companies madesubstantial downward revisions to investment in
distribution facilities and improvement works,
while restraining overall investment, particularly
in atomic fuels. With substantial cutbacks onother investments related to atomic energy,
capital spending in the industry is expected tofall for the tenth consecutive year.

Gas (-9.6% → 9.1%) {1.3%}
Additional heat supply plants will be constructedthanks to the progress of urban development
projects and the development of airport facilities.
Investment will also increase for the supply ofcity gas. Thus, capital spending is expected toturn up for the industry as a whole.
Telecommunications & Information(-14.2% → 2.1%) {13.7%}
In telecommunications, investment is planned in
3G (third-generation) mobile phones and the
expansion of fiber-optic networks. In information services and broadcasting, investment in
new office construction has peaked but spending
will increase for terrestrial digital broadcasting.
On balance, capital spending in the industry as awhole will turn to a small increase.
Leasing (-4.4% → 3.4%) {19.3%}
In the leasing industry, an increase in capitalspending is planned, as demand is expected torise as IT equipment and commercial equipment,
among others, are promoted.
Services (-31.6% → 1.8%) {1.2%}
Despite the completion of new hotels, capitalspending is expected to increase for the firsttime in three years, led by investments inamusement and waste disposal facilities.
3.

Investment Motives

Investment Motives for FY2003
Looking at the change from FY2002 in the percentage share of each category of investment motive for all industries, the shares of “expansion of
production capacity” and “others” have declined,
while those of “product development and upgrading” and “rationalization and labor saving” haveincreased.
In the manufacturing sector, the shares of“product development and upgrading,” “rationalization and labor saving” and “research anddevelopment” have increased in many industries
including electric machinery and transport
equipment. The decrease in the share of “others”
largely makes up for these increases. The sharesof “expansion of production capacity” andDevelopment Bank of Japan Research Report/ No. 43

13Investment Motives
Total(2,367 firms)

Non-manufacturing

Manufacturing
Materials

Processing & Assembly

FY2002

FY2003

FY2002

FY2003

FY2002

FY2003

FY2002

FY2003

FY2002

FY2003

ActualPlannedActualPlannedActualPlannedActualPlannedActualPlanned

Expansion of Production Capacity

40.5

39.5

23.8

23.6

18.9

19.9

25.6

24.4

48.0

47.7

Product Development and Upgrading

7.9

9.6

18.1

19.5

11.5

11.3

22.3

24.2

3.3

4.4

Rationalization and Labor Saving

7.1

8.1

15.0

15.7

17.8

17.7

13.8

15.2

3.6

4.1

Research and Development

3.6

4.1

8.9

9.6

6.7

7.1

10.4

11.2

1.2

1.3

Maintenance and Repair

18.5

19.0

19.8

19.9

29.2

30.7

14.3

14.2

18.0

18.6

Others
Total

22.4

19.7

14.6

11.8

15.9

13.3

13.6

10.8

25.9

23.9

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Notes: 1. Figures are given as percentages.
2. "Research and Development" in this chart indicates the share of R&D purposes in total domestic investment intangible fixed assets, and therefore differs from the R&D expenditure on page 17.

“maintenance and repair” have stayed almost
unchanged.
We now look at the share of each categoryof investment 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 theprocessing & assembly sub-sector, “product development and upgrading” is more important.
In the non-manufacturing sector, the shareof “expansion of production capacity” still
stands at almost 50% despite a slight decline.
Elsewhere, slight increases in share can be observed for “product development and upgrading,” “maintenance and repair” and “rationalization.” The share of “others” has declined.
4. Land Investment, by Principal Business
SectorActual Land Investment for FY2002
Actual land investment for FY2002 (based on
figures for the 1,590 firms that gave responses
regarding both FY2001 and FY2002) was down
9.4% compared with the previous year, the sixth
consecutive annual decline. In the manufacturing sector, land investment recorded a substantial decline of 28.3% due to the completion of
investments related to plant site purchases andbusiness reorganization in chemicals and transport equipment. In non-manufacturing, it
dropped 3.8% from the previous year mainly
due to reduced investment in electric power, al14

Development Bank of Japan Research Report/ No. 43

though investments in transportation for airport
sites reached their peak. As a result, land investment accounted for 5.9% of total capitalspending (4.1% in manufacturing, 6.6% in
non-manufacturing).
Planned Land Investment for FY2003
Planned land investment for FY2003 (based on
figures for the 2,196 firms that gave responses
regarding both FY2002 and FY2003) is down
39.2%, following the peaking of investment in
new airport sites in transportation. (Land investment accounts for 3.1% of total capitalspending planned for FY2003.)
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 FY2004
Planned land investment for FY2004 (based on
figures for the 1,237 firms that gave responses
regarding both FY2003 and FY2004) is down
54.6% from the previous year. (Land investment
accounts for 1.5% of total capital spending
planned for FY2004.) Planned land investment
for FY2004 is even more subject to revision thanis that for FY2003, however.

Trends in Land Investment, by Principal Business Sector
Investment AmountGrowthInvestment AmountGrowthRate (%)
FY2001

FY2002

2002/2001

FY2002(1,590 firms)
Total Investment
Investment excluding Land
Investment in Land
Share of Land (%)
Manufacturing
Investment excluding Land
Investment in Land
Share of Land (%)
Non-manufacturing
Investment excluding Land
Investment in Land
Share of Land (%)

Investment AmountGrowthRate (%)
FY2003

2003/2002(2,196 firms)

Rate (%)
FY2003

FY2004

2004/2003(1,237 firms)

11,851.7

10,653.1-10.1

13,146.5

13,864.1

5.5

6,698.4

6,230.8

11,152.8

10,019.6-10.2

12,446.6

13,438.5

8.0

6,499.1

6,140.3

-7.0
-5.5

699.0

633.5

-9.4

699.9

425.6

-39.2

199.3

90.5

-54.6

5.9

5.9

5.3

3.1

3.0

1.5

3,214.8

2,753.7-14.3

3,883.4

4,465.7

15.0

1,155.2

1,045.1-9.5

3,055.9

2,639.9-13.6

3,741.5

4,379.5

17.1

1,142.0

1,043.8

-8.6

158.8

113.9

-28.3

141.9

86.2

-39.3

13.2

1.3

-90.3

4.9

4.1

3.7

1.9

1.1

0.1

8,637.0

7,899.4-8.5

9,263.1

9,398.4

1.5

5,543.2

5,185.7

8,096.8

7,379.7-8.9

8,705.1

9,058.9

4.1

5,357.1

5,096.5

-6.4
-4.9

540.1

519.7

-3.8

558.0

339.5

-39.2

186.1

89.2

-52.1

6.3

6.6

6.0

3.6

3.4

1.7

Note: Monetary amounts are in billion yen.

machinery, chemicals and general machinery,
resulting in a decline of 7.1% overall. In the
non-manufacturing sector, capital spending fell
23.8% due to a substantial decline in telecommunications.
Planned capital spending for FY2003
shows an increase of 11.6%. In the manufacturing sector, a substantial increase of 29.9% is expected as investment will rise almost across theboard, led by transport equipment, electric machinery and chemicals. The non-manufacturingsector will see a 4.2% decline in capital spending with reduced investment in retail and telecommunications.

5. Capital Spending byForeign-affiliated Firms, by Principal
Business Sector
Out of the 2,966 firms that responded to thesurvey for both FY2002 and FY2003, 121 areclassified as foreign-affiliated firms (more than
one-third foreign ownership). They account for
5.6% of planned capital spending for FY2003.
Actual capital spending by foreign-affiliatedfirms in FY2002 was 16.8% lower than in theprevious year. As regards the manufacturingsector, spending increased in transport equipment and petroleum, but declined in electric

Capital Spending by Foreign Affiliated Firms, by Principal Business Sector
Composi- Share of

Capital Spending
FY2001

FY2002

FY2002

FY2003

FY2003

FY2004

ActualActualActualPlannedPlannedPlanned(110 firms)

Total
Wholly owned foreign firms
Manufacturing
Wholly owned foreign firms
Non-manufacturing
Wholly owned foreign firms(121 firms)(63 firms)

tionGrowth Rate (%)

All
Firms

02/01

03/02

04/03

1,210.8

1,007.5

1,026.3

1,145.0

230.7

207.1

-16.8

11.6

-10.2

FY2003 (121 firms)
100.0

5.6

56.1

50.6

60.0

69.8

59.4

50.7

-9.8

16.4

-14.7

6.1

0.3

507.7

471.7

474.4

616.2

168.7

144.9

-7.1

29.9

-14.1

53.8

9.0

41.4

46.3

47.2

61.4

51.0

38.7

12.0

30.1

-24.1

10.0

0.9

703.1

535.7

551.9

528.8

62.0

62.2

-23.8

-4.2

0.4

46.2

3.9

14.7

4.3

12.8

8.4

8.4

12.0

-71.0

-34.2

42.3

1.6

0.1

Notes: 1. Foreign-affiliated firms with over one-third foreign ownership.
2. Monetary amounts are in billion yen.

Development Bank of Japan Research Report/ No. 43

15

Among the foreign-affiliated firms, those
owned 100% by foreign capital (37 firms, accounting for 0.3% of the targeted firms)
decreased their capital spending by 9.8% in
FY2002. An increase of 16.4% is planned for
FY2003.
6. Capital Spending Abroad, by Principal
Business Sector

Capital spending abroad in all industries willrise 6.1%, from ¥1,338.2 billion in FY2002 to¥1,419.5 billion in FY2003 (based on figures forthe 1,448 firms that gave responses regarding
both FY2002 and FY2003).
The manufacturing sector accounts for
78.8% of the planned capital spending abroad
for FY2003 (up 4.2%). In the materials

sub-sector, capital spending abroad will drop
4.6% as investment eases up in the EU forchemicals and in the US and Asia excluding
China for chemicals. In the processing & assembly sub-sector, reduced investment in electricmachinery in Asia including China will be morethan offset by increased spending for capacity
buildup and new plants in electric machinery in
the US as well as in transport equipment in the
US and Asia excluding China. On balance, capital spending abroad will increase 8.2% in the
sub-sector as a whole.
In the non-manufacturing sector, capitalspending abroad will increase 13.7% thanks tospending for shipbuilding in transportation, although investment in the US is peaking in retailand transportation.
The overseas capital spending ratio (capital

Capital Spending Abroad, by Region

Capital spending

Manufacturing

abroadNon-manufacturing(1,448 firms)

Notes:

Change (%)

AmountRegion2003/2002

FY2002Share

FY2003

Share

1,073.8

80.2

1,118.9

78.8

4.2

264.4

19.8

300.6

21.2

13.7

US

519.3

38.8

513.5

36.2

-1.1

EU

181.9

13.6

144.9

10.2

-20.3

China

125.7

9.4

150.6

10.6

19.8

Asia excl. China

305.2

22.8

321.3

22.6

5.3

Others

206.0

15.4

289.2

20.4

40.4

Total

1,338.2

100.0

1,419.5

100.0

6.1

1. Monetary amounts are in billion yen.
2. "Capital spending abroad" by a company refers to capital 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 the company holds at least 10% of
the shares.)

Overseas Capital Spending Ratio in Manufacturing, by Sub-sector

Manufacturing

FY2001

FY2002

FY2003

ActualActualPlanned

45.1

46.3

42.6

Materials

29.8

30.2

24.7

Processing & Assembly

54.9

53.5

50.7

Responding manufacturers

488 firms

600 firms

Survey monthAug. 2002

Aug. 2003

Notes: 1. Figures are given as percentages.
2. Overseas capital spending ratio = capital spending overseas ÷ domestic capital spending.
3. Materials: textiles, paper & pulp, chemicals, cement, ceramics & glass, iron & steel, non-ferrous metals.
4. Processing & Assembly: food & beverages, general machinery, electric machinery, precision machinery, transport
equipment, other manufacturing.

16

Development Bank of Japan Research Report/ No. 43

spending abroad/domestic capital spending) has
been in the 40% range for the manufacturers
investing overseas. This ratio is around 30% in
the materials sub-sector, and 50% in the processing & assembly sub-sector.
7.

Information Technology Investment,
by Principal Business Sector

Actual IT Investment in FY2002
Investment in information technology in
FY2002, based on the 1,431 firms that responded to the survey for both FY2001 andFY2002, declined in the manufacturing sector(down 2.6%) but increased slightly in the
non-manufacturing sector (up 0.2%). On balance
total IT investment declined 0.8%, which is asmaller decrease as compared with total capitalspending. In the manufacturing sector, investment increased in food and beverages and ironand steel, but decreased in general machinery,electric machinery, precision machinery andchemicals. In non-manufacturing, a decrease intelecommunications and information was morethan offset by increases in electric power andcity gas, wholesale and retail, and transportation.

Planned IT Investment for FY2003
Planned investment in information technology
for FY2003, based on the 1,752 firms that responded to the survey for both FY2002 andFY2003, is expected to increase faster than total
capital spending in both the manufacturing sec-tor (up 13.4%) and the non-manufacturing sector(up 6.4%), leading to an overall increase of 9.3%.
By sector, investment in manufacturing is expected to increase in iron and steel, food andbeverages and petroleum, led by the introductionof information systems (intangible fixed assets)for production, inventory control and accounting.
In the non-manufacturing sector, IT investment
will increase in telecommunications and information and electric power and city gas, despite
reduced spending in wholesale and retail withthe completion of POS-related projects.
8.

Research & Development Expenditure

Outline of the Survey
An ancillary survey on R&D expenditure was
newly conducted as follows.
•
Target firms and date of survey: the sameas in the survey on planned capitalspending.
•
Contents of the survey: actual R&D
expenditure in FY2002 and planned R&D
expenditure for FY2003 on a nonconsolidated basis.
•
Definition of R&D expenditure: all costs
related to research & development
including labor cost, cost of raw materials,
depreciation expenses for fixed assets andallocated overhead. (Details are based on
the definition used by each firm in its
disclosure
documentsorin-house
documents.)

Overview of IT Investment
FY2002 (Actual)
Amount of IT Investment

FY2003 (Planned)
Amount of IT Investment

Change inChange in

FY2001

FY2002IT Invest-

Capital

FY2002

FY2003IT Invest-

CapitalActualActualment (%)

Spending

ActualPlannedment (%)

Spending(1,431 firms)

2002/2001(%)(1,752 firms)

Change in

2003/2002

2002/2001

Change in(%)
2003/2002

Total

811.8

805.1

-0.8

-12.2

989.1

1,081.2

9.3

4.3

Manufacturing

291.3

283.7

-2.6

-17.3

406.7

461.2

13.4

12.6

Non-manufacturing

520.4

521.4

0.2

-10.5

582.4

620.0

6.4

1.2

Notes: 1. Monetary amounts are in billion yen.
2. IT investment represents spending recognized as such by the responding firms.
3. Change in capital spending in this chart only covers those firms that gave responses regarding IT investment.

Development Bank of Japan Research Report/ No. 43

17

A total of 1,952 firms responded to the questionon actual R&D expenditure in FY2002, of which
1,094 firms gave a positive response (i.e. a value
exceeding zero). Of these, 1,826 companies also
responded to the question on planned R&D
expenditure for FY2003 (with 999 firms giving
a positive response).
Survey Result
Planned R&D expenditure for FY2003 (basedon the 999 firms that gave a positive response
for both FY2002 and FY2003) shows anincrease of 4.8%, from ¥5,808.9 billion in theprevious year to ¥6,087.0 billion. By industry,major contributions come from electricmachinery (up 7.6% from the previous year), led
by electro-devices, digital equipment and
IT-related equipment; general machinery (up5.8%); transport equipment (up 3.8%), mainly
for the development of environmentally-soundvehicles and new models; and chemicals (up2.0%), led by pharmaceuticals. Substantial
increases can also be observed in precision
machinery (up 7.9%), mainly for semiconductor processing and display production, as
well as in food and beverages (up 9.0%), withpharmaceutical and medical R&D activities

derived from existing technologies. Although
R&D covers a wide area, some firms arefocusing activities in promising fields or areas
with comparative advantage, including nextgeneration displays and digital equipment,
environmentally-sound vehicles and manufacturing equipment, and research on new
medicines using biotechnology.
The ratio of R&D expenditure to total
capital spending (R&D expenditure/capitalspending) stands at 89.4% in FY2002 on an
actual basis and 86.2% in FY2003 on a planned
basis (data covering the 999 companies that gave
responses for both FY2002 and FY2003). In the
manufacturing sector, R&D expenditure exceeds
capital spending, with the ratio rising to 151.7%
in FY2002 and 136.8% in FY2003. This trend isparticularly noticeable in pharmaceuticals andmachinery industries (general machinery,electric machinery, precision machinery,transport equipment).
890 firms also gave responses concerning
profits. Based on this data, the ratio of planned
R&D expenditure to sales in FY2003 stands at
4.0% overall: 5.1% in manufacturing and 0.7%
in non-manufacturing.

Trends in R&D Expenditure and Capital Spending
R&D Expenditure (A)(999 firms)

Capital Spending (B)(A)/(B)

FY2002

FY2003 Change (%)

FY2002

FY2003

Change (%)

FY2002

FY2003

ActualPlanned

2003/2002

ActualPlanned

2003/2002

ActualPlannedTotal

5,808.9

6,087.0

4.8

6,494.8

7,060.8

8.7

89.4

86.2

Manufacturing

5,507.6

5,777.7

4.9

3,630.5

4,222.4

16.3

151.7

136.8

Non-manufacturing
301.2
309.3
2.7
2,864.3
2,838.4
-0.9
10.5
10.9
Notes: 1. Monetary amounts are in billion yen.
2. Data covers the firms that gave responses for both FY2002 and FY2003 regarding R&D expenditures and capitalspending and reported positive amounts of R&D expenditure. The same applies to the chart below.

Ratio of R&D Expenditure to Sales(890 firms)

R&D Expenditure/Sales
FY2002 (Actual) FY2003 (Planned)

Total

3.9

4.0

Manufacturing

5.1

5.1

Non-manufacturing
0.6
Note: Figures are given as percentages.

18

0.7

Development Bank of Japan Research Report/ No. 43

Appendix
Actual Capital Spending in FY2002(1) Overall Condition
Actual capital spending continued to decrease
substantially in FY2002, in both the
manufacturing sector (down 16.2%) and thenon-manufacturing sector (down 7.5%), leading
to an overall decrease for the second consecutive
year (down 10.3%), and double-digit negative
growth for the first time in nine years.
In the manufacturing sector, capitalspending increased for a second straight year inautomobiles, as companies introduced newmodels and enhanced their marketing structure.
A second consecutive increase was also
recorded in petroleum, mainly for environmental
protection and self-service filling stations.
However, checks on spending continued due toreduced demand in electric machinery andrelated industries (non-ferrous metals, cement,
ceramics and glass, precision machinery).
Chemicals, iron & steel, general machinery andfood and beverages also experienced substantial
cutbacks on spending as major projects werecompleted.
In the non-manufacturing sector, capitalspending turned up in transportation, mainly as aresult of the building of new railway lines andextensions, as well as in retail, led by the
opening of new supermarket outlets. Other
industries, however, saw substantial declines incapital spending. Electric power continued tolimit investment in thermal power plants.
Telecommunications & information restrained
spending in existing mobile and fixedcommunications. A large amusement park wascompleted in services.
(2) Trends and Features of Capital Spending
in 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 actual spending in FY2002 accounted forby each industry.

Manufacturing
Food & Beverages (-6.5% → -14.6%) {1.9%}
Investment increased for the diversification ofdrink containers. However, large investment
projects were completed for beverage production,and spending was curtailed for dairy productmanufacturing. Overall, the industry recorded asecond consecutive decline in capital spending,and the decline was even sharper than in theprevious year.
Paper & Pulp (15.1% → -19.7%) {1.0%}
Despite some investments in boilers for power
generation using wastes as fuel, as well as inrecycled pulp production facilities, capitalspending in the industry declined for the firsttime in three years with the completion of projects for capacity expansion in special paper andthe consolidation of production bases.
Chemicals (8.1% → -19.1%) {4.3%}
Despite some investments in product upgrading
and capacity expansion, capital spending posted
a double-digit decline as large-scale projects forthe construction of new facilities peaked in general chemical manufacturers and major pharmaceutical companies.
Petroleum (34.7% → 32.3%) {0.8%}
A substantial increase in capital spending resulted from investment in refineries for thedesulfurization of light oil and in distribution
facilities, mainly for self-service filling stations.
Cement, Ceramics & Glass (-7.4% → -31.7%){0.9%}
Capital spending declined for the second consecutive year due to the curtailment and postponement of investment in general, including forflat panel displays and in information technology. The decline was even sharper than in theprevious year.
Iron & Steel (7.5% → 20.9%) {1.8%}
As the subdued tone continued, capital spending
dropped substantially with the completion of
Development Bank of Japan Research Report/ No. 43

19large-scale projects in the previous year.
Non-ferrous Metals (10.2% → -44.6%) {1.0%}
Capacity investment in optical parts and fiber
plummeted as large-scale projects related to 300
mm silicon wafers peaked, resulting in the firstdecline in spending in three years for the industry as a whole.
General Machinery (-3.3% → -18.7%) {1.9%}
Some investments in head offices were morethan offset by the completion of plant construction/expansion projects in machine tools andindustrial machines. On balance, capital spending posted a double-digit decline.
Electric Machinery (-34.4% → -20.9%) {6.7%}
Spending declined substantially for the second
consecutive year, despite some active investments in semiconductors and liquid crystal displays.
Precision Machinery (-5.7% → -20.2%){0.6%}
Spending decreased for the second consecutive
year, mainly for semiconductor processing.
Automobiles (1.1% → 1.2%) {6.5%}
Carmakers and parts manufacturers maintained
their investment in new models (new products)
at the level of the previous year. With contribution from investment in the enhancement of domestic sales structure by carmakers, capitalspending in the industry as a whole recorded asmall increase for the second straight year.
Non-manufacturing
Construction (-0.1% → 6.0%) {0.7%}
Domestic investment in construction remained
subdued, and curbs on spending continued
among general contractors. Nonetheless, capitalspending turned up in the industry as a whole,
thanks to acquisitions of offices and other assets.
Wholesale & Retail (-19.6% → 2.8%) {5.4%}
In wholesale, some investment projects werecompleted in office buildings and logistics centers. In retail, convenience stores curtailed investment,
whereassupermarkets
and20

Development Bank of Japan Research Report/ No. 43

do-it-yourself stores accelerated the establishment of outlets under the Large-scale RetailStores Law. On balance, capital spending in theindustry turned up from the substantial decline
in the previous year.
Real Estate (-20.5 → -0.6%) {4.3%}
Capital spending decreased slightly aslarge-scale redevelopment projects peaked in theTokyo metropolitan area.
Transportation (-7.1% → 15.8%) {10.5%}
Spending in airport facilities was reduced. In
marine transport, investment for shipbuilding
declined in reaction to the active spending in theprevious year. On the other hand, spending continued to rise in railways thanks to new line construction, as well as in airlines, led by active investment in airframe replacement and electronic
ticketing systems. All in all, capital spending
turned to a double-digit increase in the industry
as a whole.
Electric Power (-9.8% → -19.7%) {14.0%}
The nine major electric power companies
sharply reduced spending for power source development and substantially curtailed improvement works following the decision of the government to further liberalize the electricity market. Large-scale investment projects were completed in the wholesale power supply business.
Thus, capital spending in the industry suffered a
substantial decline of almost 20% from a year
earlier.
Gas (-15.3% → -9.6%) {1.3%}
Capital spending declined for the seventh consecutive year, as investment in the developmentof LNG bases fell sharply in city gas.
Telecommunications & Information(-10.8% → -14.2%) {14.1%}
In telecommunications, investment increased in
3G (third-generation) mobile phones but wascurtailed in current-generation (2G) mobile
phones and fixed communication. Although active investment was observed in information
services and broadcasting for terrestrial digital
broadcasting and new offices, capital spending
in the industry decreased for the second con-secutive year.
Leasing (2.8% → -4.4%) {18.2%}
Capital spending declined for the first time infour years largely due to reduced demand for IT
equipment.

Services (-35.5% → -31.6%) {1.2%}
Spending decreased substantially for the second
consecutive year as a large amusement park in
the Tokyo metropolitan area was completed.

Development Bank of Japan Research Report/ No. 43

21

Charts
Long-term Trend of Capital Spending, by Date of Survey
Total
Year
Surveyed

ManufacturingNon-manufacturing

August February August Estimate Actual August February August Estimate Actual August February August Estimate Actual
for
for
of
of
for
for
of
of
of
for
for
of
of
of
of
Previous Current Current February August Previous Current Current February August Previous Current Current February August
Yr.
Yr.
Yr.
Yr.
Yr.
Yr.
Yr.
Yr.
Yr.

1973

2.1

14.8

25.9

20.6

18.6

-6.8

14.7

33.4

26.2

25.7

8.9

14.9

18.3

15.0

11.5

1974

0.6

18.3

23.4

15.3

12.0

-6.9

27.4

35.1

26.6

22.9

7.0

9.7

10.3

2.7

-0.3

1975

21.6

9.7

5.5

-4.9

-10.3

12.9

3.8

0.3

-10.0

-16.1

30.4

17.5

12.9

2.2

-2.3

1976

14.0

9.9

16.3

12.2

5.9

8.5

-2.1

6.4

1.9

-3.5

19.1

24.5

27.7

24.0

16.4

1977

-1.5

2.1

5.7

0.8

-3.4

-11.1

-6.9

-3.1

-8.2

-11.2

7.0

10.7

14.1

9.5

4.0

1978

10.3

7.3

15.1

15.2

10.1

-0.9

-6.9

0.0

-2.2

-4.4

17.6

19.3

27.5

28.6

21.8

1979

-2.6

0.3

13.0

12.8

9.3

-6.1

4.5

19.1

21.9

18.9

-1.0

-2.2

9.1

7.0

3.3

1980

0.7

13.1

23.5

23.9

20.6

-16.0

5.2

23.3

25.8

24.8

7.8

18.8

23.7

22.6

17.5

1981

5.8

9.9

12.3

12.0

8.8

-8.2

6.7

14.5

13.0

10.4

13.2

12.4

10.5

11.1

7.5

1982

10.0

11.2

10.2

8.4

2.8

-1.8

7.2

10.3

6.6

3.8

16.3

14.5

10.1

9.9

2.0

1983

5.5

1.8

1.8

2.7

-2.1

-6.7

-5.3

-1.5

-2.6

-8.6

13.3

7.9

4.6

7.2

3.4

1984

0.7

2.6

10.5

11.3

7.6

-10.2

2.7

17.1

20.3

17.1

7.1

2.6

5.6

4.2

0.2

1985

-2.6

5.3

10.6

9.2

7.6

-9.6

5.1

12.6

9.7

8.6

0.9

5.6

9.1

8.8

6.9

1986

0.2

1.6

5.4

3.1

3.1

-9.1

-4.1

-3.6

-7.1

-9.3

5.0

5.7

12.0

10.3

12.1

1987

-0.7

0.1

3.5

6.0

4.4

-10.6

-5.6

-2.2

-0.2

-3.9

2.1

4.0

7.0

9.7

9.3

1988

-2.6

6.7

15.7

18.8

15.9

-7.1

9.3

25.3

27.5

24.7

-1.4

5.2

10.8

13.0

10.7

1989

-0.7

6.4

17.5

17.4

13.9

-4.0

9.4

26.3

26.7

22.3

0.9

4.4

11.8

11.5

8.5

1990

-1.8

8.6

17.0

16.2

14.9

-7.9

10.1

23.6

22.8

20.8

1.4

7.6

12.5

11.9

11.0

1991

0.6

4.4

10.7

8.9

8.2

-7.1

1.7

7.9

5.2

5.3

3.7

6.1

12.8

11.5

10.4

1992

0.3

-0.8

-0.9

-4.7

-7.4

-2.8

-6.4

-10.5

-15.5

-17.9

1.4

3.2

6.0

2.7

- 0.0

1993

-1.5

-5.6

-4.6

-8.4

-11.4

-11.9

-12.9

-13.1

-19.0

-23.7

2.0

-1.6

0.3

-2.3

-4.5

1994

-3.3

-5.6

-2.4

-4.7

-8.0

-14.7

-9.0

-4.0

-7.1

-10.7

-0.1

-4.0

-1.6

-3.7

-6.8

1995

-1.4

0.3

6.1

5.7

2.3

-4.3

3.8

13.5

13.9

10.6

-0.7

-1.3

3.0

2.4

-1.2

1996

-3.1

0.7

9.1

8.5

6.0

-13.6

-0.6

8.8

7.0

4.8

-1.2

1.3

9.2

9.2

6.5

1997

-7.5

-1.3

4.5

2.8

-1.5

-11.1

-1.0

8.9

7.5

4.1

-6.8

-1.5

2.5

0.7

-4.0

1998

-7.5

-4.0

-1.8

-3.5

-8.0

-11.7

-6.7

-4.7

-8.5

-13.0

-6.8

-2.7

-0.3

-1.1

-5.6

1999

-4.6

-5.3

-3.7

-3.4

-8.4

-13.6

-10.1

-10.1

-11.8

-15.5

-3.1

-3.2

-0.7

0.8

-5.0

2000

-5.0

0.2

7.6

7.8

4.1

-10.9

0.3

15.2

18.0

12.5

-4.0

0.2

4.4

3.2

0.4

2001

-8.6

-5.2

0.6

-6.6

-9.3

-3.5

-0.7

6.2

-7.0

-9.7

-9.6

-7.4

-2.0

-6.3

-9.2

2002

1.4

-2.7

-0.6

-3.8

-10.3

-9.2

-8.2

-5.6

-11.4

-16.2

3.4

0.0

1.7

-0.2

-7.5

2003

-5.1

-3.0

4.9

-3.9

1.1

16.2

-5.3

-4.8

0.2

2004

-6.1

-11.0

Note: Figures are given as percentages.

22

Development Bank of Japan Research Report/ No. 43-5.1

Total
15

(%)

10
6.0

5

FY2002

2.3
0
92/8

93/8

94/8

95/8

96/8

-1.5
98/8

97/8

99/8

00/8

4.1

4.9

1.4

FY2003
-0.6
-3.0
02/8

01/8

03/8
FY2004

-2.7

-5

-6.1
-9.3

-8.0

-10

-3.8

-5.1

-6.6

-7.4

-8.0
-11.4

-10.3

-15
93

30

94

95

96

97

98

99

00

01

02

03

04

Manufacturing

(%)

20
16.2
12.5

10.6

10

4.8

4.1

1.1

0
92/8

93/8

94/8

-10

95/8

96/8

FY2003

97/8

98/8

99/8

00/8

FY2004

02/8
- 5.6

03/8
-11.0

-8.2

-9.2

-10.7
-13.0

-3.9

01/8

-9.7
-11.4
FY2002

-15.5

-20

-16.2

-23.7
-30
93

94

95

96

97

98

99

00

01

02

03

04

Non-manufacturing
15

(%)

10
6.5
5

FY2002
3.4
0.4

0
92/8

93/8

-5

94/8

95/8

96/8
-1.2

97/8

98/8

99/8

-4.0

-4.5

00/8

0.0
01/8

02/8
FY2003

-5.0

-5.6

1.7
-0.2

-5.3

-6.8
-10

-9.2

0.2
02/8
-5.1

-4.8
-7.5
FY2004

-2.0
-15
93

94

95

96

97

98

99

00

01

02

03

04

Notes: 1. The charts are based on data in the left page.
2. Each fiscal year is surveyed five times until planned investments are materialized (see page 4 for details). Typically, planned capital spending is revised upwards from the initial survey (in August of the previous year) to thethird survey (in August of the current year), followed by downward revisions toward the publication of actual figures (the fifth survey, in August of the following year). Thus, capital spending in most cases is represented by areversed V-shaped line on the charts, peaking in August of the current year.

Development Bank of Japan Research Report/ No. 43

23

List of Back Numbers (Including JDB Research Report)
No. 43 Survey on Planned Capital Spending for Fiscal Years 2002, 2003 and 2004 (Conducted in August 2003) (this issue)
No. 42 Promoting Corporate Measures to Combat Global Warming: An Analysis of Innovative Activities in the Field, September 2003
No. 41 Prospects and Challenges for End-of-Life Vehicle Recycling, May 2003
No. 40 Survey on Planned Capital Spending for Fiscal Years 2002 and 2003 (Conducted in February2003), May 2003
No. 39 China’s Economic Development and the Role of Foreign-Funded Enterprises, May 2003
No. 38 Decline in Productivity in Japan and Disparities Between Firms in the 1990s: An Empirical Approach Based on Data Envelopment Analysis, March 2003
No. 37 Trends in Socially Responsible Investment: Corporate Social Responsibility in a New Phase,
March 2003
No. 36 Recent Trends in the Japanese Economy: A Medium-term Scenario for the Sustainability of theJapanese Economy, February 2003
No. 35 Concerns for the Future and Generational Consumption Behavior, February 2003
No. 34 Prospects and Challenges Surrounding Japan’s Electrical Equipment Industry: General Electrical
Equipment Manufacturers’ Restructuring of Operations and Future Prospects, November 2002
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
Disparities 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. 4Current 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