The tax hike from 5 percent in April 2014 dealt a setback and triggered a downturn. A revised manufacturing survey on Monday revealed manufacturing activity fell in August, together with complete orders continued to slide and output. Sales rose a meagre 0.4%up for a 11th consecutive quarter but slowing sharply in the last period’s 3.0% gain. Monday’s data also showed corporate recurring gains fell 12.0% in April-June in the year before, swinging from a 10.3% profit in the prior period. Manufacturers’ capex dropped 6.9% on-year, weighed by information and communications machinery, oil and coal, whereas non-manufacturers’ spending increased 7.0% led by property and leasing of goods. Some analysts say the information, which is utilised to calculate revised gross domestic product figures because of Sept. 9, pointed to a minor downward revision to the upcoming GDP data. Even though manufacturers have increasingly grown wary about boosting capex Organizations are refurbishing gear that is old and fostering investment in labour-saving and manufacturing engineering to cope with labor shortages within an aging society. Capital cost was a bright spot, however. Even a tariff war involving China and the USA currently involves tens of thousands of dollars of each country’s goods and threatens economic growth. Though Washington says talks will restart sometime this past month both sides imposed tariffs at the latest escalation. In Japan, a scheduled sales tax increase to 10 percent from the present 8% in October could sabotage private consumption that constitutes about 60 percent of the world’s third-largest economy, adding to doubt. However, spending on manufacturing fell for the very first time in a couple of years at a signal the simmering Sino-U.S. commerce warfare and slowing global expansion are taking a toll on Japanese mill activity. Manufacturer capex down 6.9percent on year slows TOKYO (Reuters) — Japanese companies raised spending on equipment and plant in April-June for its 11th consecutive quarter, with investment led by the service sector and underscoring funding expenditure’s resilience. A preliminary reading out last month revealed Japan’s economy expanded a much-faster-than-expected 1.8percent in April-June as solid family and business spending counter the blow to exports from trade frictions and weak external demand. Firms raised capital spending by 1.9percent in the second quarter from the identical period a year before, Ministry of Finance data showed on Monday. On a seasonally-adjusted foundation, capital expenditure climbed 1.5 percent quarter-on-quarter at April-June. “As uncertainty within the international market frees more due to the intensifying U.S.-China trade war, Japanese companies are most likely to hold off from fostering capex from now on,” he said.