ID :
10640
Tue, 06/24/2008 - 09:36
Auther :
Shortlink :
http://m.oananews.org//node/10640
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Japan Biz Sentiment Deteriorates for 3rd Qtr. in April-June
Tokyo, June 24 (Jiji Press)--Large Japanese companies' business
sentiment deteriorated for the third straight quarter in April-June as many firms are facing tough conditions due to soaring material and fuel prices, a government survey showed Monday.
The business sentiment index for large firms with capital of one
billion yen or more came to minus 15.2 in the first quarter of fiscal 2008,
down from minus 9.3 in January-March, the Ministry of Finance and the
Cabinet Office said in a joint survey report.
The index hit the lowest level since April-June 2004, the most
distant quarter for which comparable data were available. The index rewrote
a record low for the second consecutive quarter.
The index represents the percentage of firms feeling improvements
in their business conditions from the previous quarter minus that of firms
sensing the opposite.
The April-June index for large manufacturers deteriorated to minus
15.1 from minus 12.9 pct for the previous quarter, and the index for large
nonmanufacturers came to minus 15.3 against minus 7.2, the report said.
Among manufacturers, sentiment was sluggish for the general
machinery, automobile and precision equipment industries, while paper and
pulp makers' sentiment turned positive as they managed to transfer rising
materials costs to products prices.
The index turned sharply into negative territory in the
construction industry among nonmanufacturers as it has been hit hard by a
stricter building code and weak sales of owner-occupied homes.
Looking ahead, the large firms' business sentiment index came to
plus 3.7 for July-September and plus 5.7 for October-December.
A MOF official said that many companies expect material prices to
level off somewhat.
The report also showed that the index on large companies' views on
the current economic conditions fell to minus 27.3 in April-June, against
minus 21.1 for the previous quarter. The index stood at minus 11.6 for
July-September and minus 3.0 for October-December.
Japanese companies expect their capital expenditures for fiscal 2008 ending in March 2009 to fall 0.9 pct from the previous year. Recurring profits at nonfinancial companies are estimated to
decline 2.0 pct, while sales are projected to rise 0.6 pct.
sentiment deteriorated for the third straight quarter in April-June as many firms are facing tough conditions due to soaring material and fuel prices, a government survey showed Monday.
The business sentiment index for large firms with capital of one
billion yen or more came to minus 15.2 in the first quarter of fiscal 2008,
down from minus 9.3 in January-March, the Ministry of Finance and the
Cabinet Office said in a joint survey report.
The index hit the lowest level since April-June 2004, the most
distant quarter for which comparable data were available. The index rewrote
a record low for the second consecutive quarter.
The index represents the percentage of firms feeling improvements
in their business conditions from the previous quarter minus that of firms
sensing the opposite.
The April-June index for large manufacturers deteriorated to minus
15.1 from minus 12.9 pct for the previous quarter, and the index for large
nonmanufacturers came to minus 15.3 against minus 7.2, the report said.
Among manufacturers, sentiment was sluggish for the general
machinery, automobile and precision equipment industries, while paper and
pulp makers' sentiment turned positive as they managed to transfer rising
materials costs to products prices.
The index turned sharply into negative territory in the
construction industry among nonmanufacturers as it has been hit hard by a
stricter building code and weak sales of owner-occupied homes.
Looking ahead, the large firms' business sentiment index came to
plus 3.7 for July-September and plus 5.7 for October-December.
A MOF official said that many companies expect material prices to
level off somewhat.
The report also showed that the index on large companies' views on
the current economic conditions fell to minus 27.3 in April-June, against
minus 21.1 for the previous quarter. The index stood at minus 11.6 for
July-September and minus 3.0 for October-December.
Japanese companies expect their capital expenditures for fiscal 2008 ending in March 2009 to fall 0.9 pct from the previous year. Recurring profits at nonfinancial companies are estimated to
decline 2.0 pct, while sales are projected to rise 0.6 pct.
