Japanese companies' confidence falls

Toyota Motor Corp. reduced production in October as government's stimulus programs ended, file photo

Source: Press TV
http://www.presstv.ir/detail/155519.html


Confidence among Japanese manufacturers has worsened for the first time since the end of the global economic downturn last year, a Bank of Japan survey showed.

According to the survey, which was released on Wednesday, the index of confidence at large manufacturers has undergone a fall since December and is expected to deteriorate over the next three months.

The index showed a dip from 8 in September to 5 in December and is expected to plunge to a new low of minus 2 in March, making companies more cautious about business conditions.

The decline is due to a slowdown in exports and also the government's failure in resuming stimulus programs. Meanwhile it is difficult to measure the level of domestic demand.

The government's subsidy program to buy fuel-efficient cars ended in September, forcing companies including Toyota Motor Corp. to reduce production in October.

"The outlook for big firms and manufacturers felt a little weak," Reuters quoted Yoshiki Shinke, senior economist at Dai-Ichi Life Research Institute, as saying.

"The BOJ ( Bank of Japan) is likely to stick with its current status for a while ... Rather than economic indexes, the trigger (for further easing) is likely to come from the market, such as stocks falling greatly or the yen strengthening even more due to overseas events," he added.

The authorities at the Bank of Japan are planning to examine the survey next week, but the central bank has delayed making improvements in its monetary policies to lessen the problem.