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This Feb. 6, 2015 photo taken from a Kyodo News helicopter, shows Tokyo's Shinjuku Ward covered in fog. (Kyodo)
Major Japanese companies pessimistic about economy: survey
TOKYO (Kyodo) -- Nearly 70 percent of major Japanese companies view the domestic economy as having levelled off and 10 percent believe it has already started to contract, affected partly by the prolonged U.S.-China trade dispute, a Kyodo News survey showed Monday.The companies including Toyota Motor Corp. and Sony Corp. were also cautious about the economic outlook for next year, with many voicing concern about a drop in consumption following the planned consumption tax hike in October as well as a spread of protectionist trade policies around the world, according to the survey conducted in July.
Among the 112 companies surveyed, 66 percent said the Japanese economy was flat, 23 percent said it was gradually expanding, and 10 percent saw it as in recession.
The results show that corporate sentiment has changed dramatically over the past year, as China's slowing economic growth in the wake of the trade war with the United States has hurt Japanese companies with large business exposure to and manufacturing bases in China. In a survey conducted a year ago, 77 percent of companies said the economy was expanding moderately.
In the latest survey conducted by late July, 46 percent said the U.S.-China trade row had or was expected to hurt their business performance, before U.S. President Donald Trump announced on Aug. 1 that he will impose additional 10 percent tariffs on $300 billion worth of Chinese imports.
As for Japan's tightened controls on exports to South Korea of three materials used in semiconductor and display panel production, more than a half of the companies did not know how it would affect their businesses or declined to comment.
Only 6 percent said they supported the government's decision, though recent opinion polls showed the Japanese public is largely supportive of the tighter controls amid a deepening row with South Korea over a series of thorny issues including wartime history.
Source: https://mainichi.jp/english/articles/20190812/p2g/00m/0bu/020000c
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