Japan business sentiment worsens

Central bank survey of 10,000 firms finds corporate confidence at seven-year low.

    Business confidence among Japanese manufacturers has fallen at the fastest rate in recent memory [AFP]

    The index measures the percentage of firms that think business conditions are good minus those that think they are bad.

    Further downturn

    The survey also showed that major Japanese manufacturers expect a 24.2 per cent slump in pre-tax profits in the current financial year to March.

    Business confidence among the manufacturers is also said to have fallen at the fastest pace in more than three decades.

    Business sentiment has been worsening as the global financial crisis pushes Japan's economy into its first recession in seven years, heightening views that it will suffer its longest contraction on record.

    With exports suffering from the global slowdown, corporate profits are being eroded prompting many Japanese companies to slash investment in new equipment and factories, which had been a key driver of economic growth.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Daughters of al-Shabab

    Daughters of al-Shabab

    What draws Kenyan women to join al-Shabab and what challenges are they facing when they return to their communities?