75% of Japanese companies say business 'stagnant'
JAPAN - More than twice as many companies - 75.6 per cent - feel their business is stagnant compared with sentiment in April, a recent Yomiuri Shimbun survey shows.
The companies attribute their poor performance to deteriorating overseas economies such as in Europe and China, among other things.
Conducted at the end of September and early October, the nationwide survey covered 119 companies, 90 of which said business was stagnant.
The number of companies that said business was stagnant is more than twice that found in a similar survey conducted in April.
But the number of firms that said their business conditions are gradually deteriorating dramatically increased to 18 from two in the previous survey.
According to the results compiled Sunday, 11 companies - 9.2 per cent - said their business conditions are gradually improving, a significant decrease from the previous survey's 74 - 62.7 per cent - including one company that said "clearly improving."
Asked to choose factors behind the stagnation or deterioration of business, with multiple answers allowed, the largest portion, 76 companies, chose "economic slowdown in China and other emerging countries," followed by 70 that chose "continuing fiscal and financial crisis in Europe."
As factors behind concerns for their business prospects, many companies cited "the economic slowdown in emerging countries" and "the economic crisis in Europe," reflecting concerns about declines in exports and production. Multiple answers were allowed for the question.
In regard to the deterioration in relations between Japan and China triggered by the government's placing the Senkaku Islands under state control, the largest portion, 49 companies, said there was no specific impact on their business in China, while 25 said they would reconsider their investment in the country, showing some companies are becoming cautious about doing business in China.
In September, the government set up a target of zero nuclear power plants operating in the nation in the 2030s. Asked to choose the ideal percentage of Japan's energy supply from nuclear power as of 2030, the largest portion - 16 companies - chose "25 per cent of all power generation," which is almost the same as the current percentage. The second largest portion - 11 companies - chose 15 per cent, while only two companies said they would accept the government's zeropercent target.
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Japan trade deficit tops $49 bil for the first half fiscal 2012
JAPAN - Japan posted a record 3.22 trillion yen (S$49 billion) trade deficit for the first half of fiscal 2012, the Finance Ministry said Monday. The deficit was due chiefly to declines in exports to Europe and China and an increase in fuel imports, including liquefied natural gas.
The trade deficit for the April-September period was the largest since the ministry began recording statistics in the current form in fiscal 1979, topping the 3 trillion yen (S$49 billion) mark for the first time.
Japanese exports have declined amid the global economic slowdown following the sovereign debt crisis in Europe, the ministry said.
It was also the first time Japan posted a trade deficit with the European Union during the half-year period. Japan's trade deficit with China, which accounts for nearly half the nation's overall deficit, totaled 1.53 trillion yen, expanding for a fourth straight half-year period.
In September alone, Japanese exports to China slid 14.1 per cent from the same month last year.
Overall exports totaled 32.16 trillion yen, down 2 per cent from the same period last year for the third straight decline.
Overall imports stood at about 35.38 trillion yen, up 2.6 per cent from the same period last year for the fifth straight increase.
Crude oil imports rose 8.3 per cent, while LNG, which is used in thermal power generation, rose as much as 24.3 per cent. LNG prices remained high during the period, greatly impacting import values as most of the nation's nuclear power plants are still suspended.
Exports dropped 10.3 per cent from the same month last year to about 5.36 trillion yen on declines in auto exports to Britain and China. Imports increased 4.1 per cent to about 5.92 trillion yen on the continued increase in crude oil and LNG imports, as well as a marked increase in cell phone imports from China.
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