Japanese firms see flat business spending amid trade frictions, tax hike jitters

By Tetsushi Kajimoto TOKYO (Reuters) - Business investment in Japan has been a rare bright spot in the world's third-largest economy but that may now be fading amid anxiety over an upcoming sales tax hike and global trade frictions, a Reuters monthly corporate survey showed. Just over half, or 56 percent, predict domestic investment in factories and equipment will be flat in the next fiscal year that starts in April, while 30 percent project an increase and 14 percent a decline, the survey of more than 250 companies in Japan found. The outlook for foreign capital expenditure was even less optimistic: two-thirds of firms expect that to remain unchanged while 19 percent see a rise and 15 percent a drop

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