Japan reports moderate economic recovery in October led by business capex

Japan’s Cabinet Office said the economy is recovering moderately in October, driven primarily by business capital spending in software and digitalisation, while private consumption remains sluggish. Exports to Asia were stable, but shipments to the U.S. weakened amid rising tariffs. The report pointed out an uptick in bankruptcies in September linked to labour shortages. With a new stimulus package under way, the government expects growth to pick up gradual momentum, though risks remain from global trade policy and inflation pressures.