Japan business mood worsens for 2nd quarter amid rising costs

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TOKYO: Japanese big manufacturers' business confidence soured for the second straight quarter in the three months to June, a central bank survey showed on Friday (Jul 1), hit by rising input costs and supply disruptions caused by China's strict COVID-19 lockdowns. But big non-manufacturers' mood improved i

TOKYO: Japanese big manufacturers' business confidence soured for the second straight quarter in the three months to June, a central bank survey showed on Friday , hit by rising input costs and supply disruptions caused by China's strict COVID-19 lockdowns.

The tankan's headline index gauging big manufacturers' mood slipped to plus 9 in June from plus 14 in March, hitting the lowest level since March 2021. It compared with a median market forecast of plus 13. Both big manufacturers and non-manufacturers expect business conditions to remain largely unchanged three months ahead, the tankan showed.

Big companies expect to increase capital expenditure by 18.6 per cent in the current fiscal year ending in March 2023, compared with a median market forecast for a 8.9 per cent gain.

 

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