The outlook for capital expenditure in Japan is becoming dim.

Strong corporate spending has always been one of the main pillars of the Japanese economy, but the outlook seems to be dimming. Revised growth data released on Monday showed a 0.7% decline in capital expenditure in the first quarter, with economists predicting that investments will weaken further due to the impact of the conflict in the Middle East. Norihiro Yamaguchi of the Oxford Economics Research Institute said, "Rising energy prices and increased uncertainty will limit consumption and investment activities." He added that rising costs could weigh down on corporate profits, putting pressure on investments.