Nearly 40% of polled firms expect double-dip recession
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Last Updated: Sunday, January 03, 2010, 14:31
  
Tokyo: Nearly 40 percent of major Japanese companies polled in a survey have said that the Japanese economy is "highly likely" or "likely" to fall into a double-dip recession, according to survey results.

According to survey results compiled yesterday, 40 firms, or 37 percent of the 109 leading Japanese companies anticipate a further downturn in economic activity in Japan. Companies including Canon Inc., Nippon Steel Corp., Nippon Oil Corp., Sony Corp., Toyota Motor Corp. and Mitsubishi UFJ Financial Group Inc. were surveyed from late November to mid-December.

To a multi-reply question about reasons for the gloomy outlook, 26 of the 40 companies attributed it to the yen's appreciation. Twenty-four firms said the effects of stimulus measures adopted by the government will wane, while 23 referred to deepening deflation.

But 56 of the 109 companies, or about 51 percent, said they expect the domestic economy to stage a full-scale rally in the second half of 2010.

The survey also found that 61 companies see the current economy as leveling off while 17 said it is slowing down. In contrast, 31 firms regard the economy as gradually expanding.

With regard to the economic policy of the Japanese government led by the Democratic Party of Japan, 48 companies want to see a clear roadmap toward medium- and long-term growth.

Among other survey findings, 20 companies are planning to cut back on capital spending in fiscal 2010, while 33 firms are considering workforce reductions.

PTI


First Published: Sunday, January 03, 2010, 14:31


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