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Strategies & Market Trends : World Outlook -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (784)	5/21/2001 11:41:25 AM
From: Don Green	Respond to of 48966

BOJ Report Finds Private Capital Investment 'Leveling Off' Monday, May 21, 2001 TOKYO (Nikkei)--The Bank of Japan downgraded its assessment of corporate investment in plant and equipment in its monthly report of recent economic and financial developments for May released Monday. Investment seems to be "leveling off," the report said, down from "continuing to expand" in the previous month's report. Private capital spending has been expanding in the central bank's reports since April 2000. The BOJ maintained its assessment of the overall economy, saying it is "in an adjustment phase," but was tougher in its evaluation of corporate and household activities. The downward revision in business spending stems partly from a decline in May of machinery orders, a leading indicator of capital investment, the report noted. Over the months ahead, "Investment is projected to peak and then turn lower, as the effect of a backlog of orders that has been sustaining investment dissipates." The report also downgraded industrial production, saying it is "declining sharply," and citing falling exports of information technology-related products and automobiles. The BOJ left its previous assessment of consumer spending unchanged, saying "it shows no strong signs of recovery." In regard to financing activities, the report said the lending stance of banks remained largely unchanged, even though companies have increased direct fund-raising through commercial paper and other financial instruments. (The Nihon Keizai Shimbun Tuesday morning edition)