Japanese companies increased capital spending by 6.5% in Q4 2025, sharply picking up from 2.9% in the previous period and exceeding market expectations of 3.0%. The latest result marked the fourth straight quarter of growth, reflecting stronger corporate confidence. Non-manufacturing investment significantly accelerated (10.1% vs 3.9% in Q3), boosted by a solid rebound in construction (14.9%) and further gains in real estate (40.7%), goods rental and leasing (26.0%), and services (2.5%). In contrast, manufacturing outlays stagnated following a 1.4% growth previously, as gains in food(13.6%), chemical products (18.7%), iron and steel (13.4%), and fabrucated metal products (25.5%) offset declines in petroleum and coal (-14.9%), production machinery (-6.7%), and information and communications (-38.2%).