World Business

Japan large corporations' economic outlook optimistic for Q2

(Xinhua)
Updated: 2010-06-14 14:43

TOKYO: Japanese manufacturers at large corporations felt more optimistic about business conditions in the April-June quarter than they did in the previous quarter, the Ministry of Finance and the Cabinet Office said in a joint report Monday.

A saleswoman at a clothing shop attracts customers in a shopping district in Tokyo May 18, 2010. Japanese manufacturers at large corporations felt more optimistic about business conditions in the April-June quarter than they did in the previous quarter, the Ministry of Finance and the Cabinet Office said in a joint report Monday. [Xinhua]

The quarterly business outlook surveys large company's business sentiment which measures the percentage of firms saying the economy will improve minus those saying it will worsen,

The business survey index (BSI) of sentiment at corporations with a capital of 1 billion yen or over stood at 4.0 for all industries, up from negative 2.4 in the previous quarter, the report revealed.

In the manufacturing sector specifically sentiment rose from 4. 3 to 10.0 in the April-June quarter, according to the survey.

The outlook for non-manufacturing large corporations stood at 0. 9 up from minus 6.3 in the previous quarter.

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Monday's survey also showed that large firms expect economic conditions to keep improving. The index measuring firms' sentiment on the economic outlook stood at 10.1 for the July-September period and 9.3 for the October-December period.

Increased optimism in big businesses in Japan is being attributed to a steadily increasing demand for Japanese products abroad, particularly from emerging markets as well as improving consumer sentiment, according to analysts.

Economists also cite the comparatively fast pace of the economic recovery and economic growth in East Asia, compared to the global pace, as a pertinent factor in lifting sentiment.