ID :
144209
Wed, 09/29/2010 - 15:16
Auther :
Shortlink :
http://m.oananews.org//node/144209
The shortlink copeid
Japan Big Makers' Sentiment Improves but Outlook Worsens
Tokyo, Sept. 29 (Jiji Press)--Business sentiment among large
manufacturers in Japan improved for the sixth straight quarter amid robust exports and heat wave-boosted consumption, but their outlook worsened amid growing economic uncertainties, a Bank of Japan survey showed Wednesday.
The central bank's September "tankan" survey showed the diffusion
index gauging large manufacturers' current business conditions came to plus
8, up seven points from the previous June survey.
The latest reading was stronger than the average forecast of plus 6
among 15 economic research institutes. The DI represents the percentage of
companies seeing good business conditions minus that of firms feeling the
opposite.
But the pace of improvement in big makers' business sentiment was
slower than the 15-point increase in the previous survey, apparently
affected by a recent slowdown in export growth.
Reflecting concerns about European and U.S. economic slowdowns and
the yen's rise to 15-year highs, large manufacturers' business condition
outlook DI toward December stood at minus 1, the first fall in seven
quarters. The outlook DI for large nonmanufacturers came to minus 2.
The latest survey showed that strong demand in emerging economies
and spending growth in Japan due to higher-than-average summer temperatures
contributed to broad-based improvements in the current business condition
DIs among manufacturers and nonmanufacturers.
In the manufacturing sector, the current business condition DI
stood at plus 32 for automakers thanks to the government's subsidy program
to promote purchases of eco-friendly vehicles and robust exports to emerging
economies.
But negative factors such as the end to the Japanese incentive
program earlier this month led automakers' outlook DI to fall by a record 38
points to minus 6 toward December.
Large manufacturers' assumed exchange rates for fiscal 2010 ending
in March 2011 averaged 89.66 yen to the dollar, against the 90.18 yen in the
June survey. But the dollar has been trading between 83 yen and 84 yen
recently.
Capital expenditures planned by large manufacturers for fiscal 2010
are up 4.0 pct from the previous year, higher than the 3.8 pct increase in
the previous survey.
With the growing uncertainties over the economy, however, their
capital spending in theApril-September fiscal first half was revised down to
a rise of 4.1 pct from the 5.2 pct growth projected in June.
Their combined recurring profits in the October-March second
quarter are projected to rise 2.7 pct for the year, almost unchanged from
the June survey.
The output price changes DI stood at minus 15 for large
manufacturers, the first decline in three quarters, suggesting that Japan is
still mired in deflation.
Kazuhiro Takahashi, general manager at Daiwa Securities Capital
Markets Co., said that most tankan figures were within his expectations. But
the planned corporate capital spending turned out to be weaker than
expected, he said.
Takahashi attributed the deteriorated outlook to the yen's
appreciation, a reversal of rush demand before the expiration of the
automobile subsidy program and the lack of direction in the Japanese
government's economic measures.
END
manufacturers in Japan improved for the sixth straight quarter amid robust exports and heat wave-boosted consumption, but their outlook worsened amid growing economic uncertainties, a Bank of Japan survey showed Wednesday.
The central bank's September "tankan" survey showed the diffusion
index gauging large manufacturers' current business conditions came to plus
8, up seven points from the previous June survey.
The latest reading was stronger than the average forecast of plus 6
among 15 economic research institutes. The DI represents the percentage of
companies seeing good business conditions minus that of firms feeling the
opposite.
But the pace of improvement in big makers' business sentiment was
slower than the 15-point increase in the previous survey, apparently
affected by a recent slowdown in export growth.
Reflecting concerns about European and U.S. economic slowdowns and
the yen's rise to 15-year highs, large manufacturers' business condition
outlook DI toward December stood at minus 1, the first fall in seven
quarters. The outlook DI for large nonmanufacturers came to minus 2.
The latest survey showed that strong demand in emerging economies
and spending growth in Japan due to higher-than-average summer temperatures
contributed to broad-based improvements in the current business condition
DIs among manufacturers and nonmanufacturers.
In the manufacturing sector, the current business condition DI
stood at plus 32 for automakers thanks to the government's subsidy program
to promote purchases of eco-friendly vehicles and robust exports to emerging
economies.
But negative factors such as the end to the Japanese incentive
program earlier this month led automakers' outlook DI to fall by a record 38
points to minus 6 toward December.
Large manufacturers' assumed exchange rates for fiscal 2010 ending
in March 2011 averaged 89.66 yen to the dollar, against the 90.18 yen in the
June survey. But the dollar has been trading between 83 yen and 84 yen
recently.
Capital expenditures planned by large manufacturers for fiscal 2010
are up 4.0 pct from the previous year, higher than the 3.8 pct increase in
the previous survey.
With the growing uncertainties over the economy, however, their
capital spending in theApril-September fiscal first half was revised down to
a rise of 4.1 pct from the 5.2 pct growth projected in June.
Their combined recurring profits in the October-March second
quarter are projected to rise 2.7 pct for the year, almost unchanged from
the June survey.
The output price changes DI stood at minus 15 for large
manufacturers, the first decline in three quarters, suggesting that Japan is
still mired in deflation.
Kazuhiro Takahashi, general manager at Daiwa Securities Capital
Markets Co., said that most tankan figures were within his expectations. But
the planned corporate capital spending turned out to be weaker than
expected, he said.
Takahashi attributed the deteriorated outlook to the yen's
appreciation, a reversal of rush demand before the expiration of the
automobile subsidy program and the lack of direction in the Japanese
government's economic measures.
END
