Japanese companies' spending on plant and equipment was unchanged from a year earlier in Q1 2026, reversing from a 6.5% increase in the previous quarter and ending a four-quarter streak of growth, signaling a loss of momentum in corporate investment. Capital expenditure in the manufacturing sector declined 0.4% after being flat in Q4, weighed down by lower spending in chemical products (-2.9%), fabricated metal products (-25.2%), business-oriented machinery (-8.6%), information and communication (-18.5%), and transport equipment (-7.6%). Meanwhile, non-manufacturing investment edged up 0.3%, supported by gains in wholesale and retail trade (2.1%), goods rental and leasing (37.6%), information and communication (6.2%), transport and postal activities (0.4%), and electricity production, transmission, and distribution (18.0%). The mixed performance suggests firms remained selective in their investment plans amid an uncertain economic environment.