Business sentiment of Japanese firms improves as vaccination gets promoted

0 Comment(s)Print E-mail Xinhua, September 13, 2021
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TOKYO, Sept. 13 (Xinhua) -- A survey conducted by the Japanese government showed the confidence index for firms capitalized at least 1 billion yen (9.1 million U.S. dollars) was plus 3.3 in the July-September period, rising from minus 4.7 in the previous quarter, local media reported Monday.

The figures are calculated by subtracting the percentage of firms reporting worsening conditions from those observing improvements.

As increasing numbers of fully vaccinated people against COVID-19 lifted expectations for an economic recovery, it is the first time in three quarters for large Japanese companies to have a positive business sentiment.

"Business conditions remain severe due to coronavirus infections, but the outcome likely reflected the fact that the economy has continued on a recovery trend, with firms' sentiment enhanced as the vaccination campaign was promoted," a government official told reporters.

The index for manufacturers was a plus 7.0 compared with the minus 1.4 situation in the previous quarter. The sector benefited from a global chip shortage, which lifted demand for products, including chip-making equipment and semiconductors used for cars, the official said.

The index for non-manufacturers, including accommodations and restaurants, also turned positive to plus 1.5 from minus 6.2, as more people in Japan have received COVID-19 vaccine doses.

The official also said that a recovery in some fields, such as advertising, which experienced a plunge amid the initial blow of the COVID-19 pandemic last year, also supported the index.

Although the vaccination rollout started late in Japan compared with other developed economies, Yasutoshi Nishimura, minister in charge of the coronavirus response, said on Sunday that over 50 percent of Japan's population have been fully vaccinated.

The joint survey by the finance ministry and the cabinet office covered 14,580 companies capitalized at least 10 million yen (90,812.5 dollars), and 76.4 percent of them responded before Aug. 15.

The index for midsize companies capitalized at the range from 100 million yen (908,125 dollars) to 1 billion yen increased to plus 0.2 from minus 9.0 in April-June.

The index for small firms capitalized at the range from 10 million yen to 100 million yen rose to minus 18.0 from minus 25.5 but remained negative. Enditem

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