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

    Interactive: How does your country vote at the UN?

    Interactive: How does your country vote at the UN?

    Explore how your country voted on global issues since 1946, as the world gears up for the 74th UN General Assembly.

    'We were forced out by the government soldiers'

    'We were forced out by the government soldiers'

    We dialled more than 35,000 random phone numbers to paint an accurate picture of displacement across South Sudan.

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.