(Update) Japan Big Firms` Sentiment Turns Positive for 1st Time in 7

Tokyo, Sept. 17 (Jiji Press)--The business sentiment index for
major Japanese companies turned positive for the first time in seven
quarters in July-September thanks to a rise in demand partly reflecting
stimulus measures introduced by the government, a survey showed Thursday.
The sentiment index for firms with capital of one billion yen or
more came to plus 0.3, up from minus 22.4 in the previous quarter, according
to the joint survey by the Ministry of Finance and the Cabinet Office.
The index represents the percentage of companies seeing
improvements in their business conditions from the previous quarter minus
that of firms feeling the opposite.
The improvement was attributable to progress in inventory
adjustments at automakers and electric machinery makers, and the effects of
government programs for promoting purchases of eco-friendly vehicles and
energy-efficient home appliances.
But the business sentiment index for small companies with capital
of less than 100 million yen came to minus 36.7, worse than minus 49.6 in
the previous quarter, the report showed.
In July-September, the sentiment index for large manufacturers
stood at plus 15.5, against minus 13.2 in the previous quarter, while that
for large nonmanufacturers came to minus 8.6, against minus 27.8.
Among nonmanufacturers, traders enjoyed a recovery in auto and
electronics parts transactions while utility companies benefited from falls
in energy prices.
The government survey also showed that the business conditions
outlook index for large companies stood at plus 4.9 for October-December and
plus 4.4 for January-March next year.
A MOF official said that the ministry is concerned whether the
recovery in demand will last long.
The survey revealed that Japanese firms are still saddled with
excess jobs.
The index that represents the gap between the percentage of firms
feeling shortages in employment and that of companies sensing excess jobs at
the end of September stood at minus 9.6 for large companies, compared with
minus 11.7 in April-June. The index came to minus 8.2 for small firms,
compared with minus 12.4.
Large firms' employment outlook index stood at minus 5.5 for
October-December and minus 2.0 for January-March 2010.