Bank of Japan Reports Strong Capital Investment Backed by Global AI Demand on July 9

According to the Bank of Japan's Sakura Report released on July 9, Japanese companies maintain robust capital expenditure plans supported by surging global artificial intelligence demand, with semiconductor equipment orders and related manufacturing activity underpinning production levels across multiple domestic regions.

The report notes that companies are accelerating the pace of passing rising raw material costs and labor expenses to consumers through price increases, particularly following Middle East tensions. Rising input costs from supply chain disruptions are being reflected in product prices faster than in previous periods, with food and daily necessity manufacturers planning significant price hikes starting this summer.