Capital spending by Japanese businesses may continue moderate uptrend in the coming months as companies' profits improve, the Bank of Japan said in its monthly report published on Thursday.
"Business fixed investment is projected to follow a moderate increasing trend, partly due to investment related to disaster prevention and energy, as corporate profits head toward improvement," the central bank said as it revised up its assessment of the economy.
The bank observed that the economy has started to pick up as exports stopped decreasing. Business fixed investment continued to show resilience in non-manufacturing and appeared to have stopped weakening, the report said.
The bank was also upbeat on industrial production and said production has stopped decreasing and signs of picking up have become increasingly evident, reflecting developments in demand both at home and abroad.
The central bank on Wednesday retained its plan to double the monetary base and its holdings of Japanese government bonds in two years, as announced in April. The BoJ's decision to keep the ultra-loose monetary policy intact suggests that the bank is moving cautiously amid a recent spike in bond yields.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.