Major Japanese firms' capital spending plans post largest fall+

TOKYO, Aug. 4 Kyodo -
Major Japanese firms' capital spending plans for fiscal 2009 posted a 9.2
percent plunge from the previous year to 18,220.6 billion yen as of June, the
sharpest fall since comparable data became available in fiscal 1956, a
government bank said Tuesday.

They are expected to further trim their plans, leading their eventual capital
expenditure cut in the year ending in March 2010 to exceed the record fall of
11.4 percent in fiscal 1993 on an actual spending basis, the Development Bank
of Japan said.
Their actual plant and equipment spending in fiscal 2008 declined 7.1 percent
as industrial production nose-dived on quick economic deterioration since last
fall, it said.
Some 2,400 surveyed companies capitalized at 1 billion yen or more plan to cut
capital outlays in fiscal 2010 by 3.7 percent for the third consecutive year of
reductions.
Particularly, manufacturers are cautious about capital investments amid
uncertainties over the future economic course at home and abroad.
Manufacturers plan to reduce their fiscal 2009 spending by a record 20.7
percent to 7,057.9 billion yen, while nonmanufacturing firms are attempting to
cut their outlays by only 0.1 percent to 11,162.7 billion yen.
Automakers' spending plans for the current fiscal year registered a substantial
33.8 percent decline, reflecting their postponement of or freeze on capacity
expansion plans.
Electrical machinery makers also recorded a large drop of 24.6 percent as they
curbed investments on semiconductor production equipment.
In contrast, oil companies plan to boost capital spending by 45.4 percent.
Electricity generators posted a planned 12.0 percent expansion.
==Kyodo