Japan's corporate investment momentum hit a wall in Q3. Capital spending crawled up just 2.9% year-over-year—a stark miss against the 6.0% forecast and way off the prior quarter's robust 7.6% clip.

The software spending story? Equally tepid. External software investments mirrored that 2.9% gain, falling short of the 5.4% consensus and trailing last year's 5.2% pace. Not exactly the tech-driven acceleration analysts were banking on.

Company sales offered a sliver of relief, edging up 0.5%—marginally better than flat, but hardly the kind of top-line growth that fuels aggressive capex cycles. The divergence between expectations and reality here signals caution creeping into boardrooms. Whether it's macro headwinds, tighter credit, or strategic hesitation, Japanese corporates are clearly pumping the brakes.