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▼ Japanese Firms' Mood Turns Positive As Tariff Fears Ease: Gov't Survey
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Major Japanese companies took a positive view of business conditions in the three months through September for the first time in two quarters, a government survey showed Thursday, reflecting recovering chip demand and easing concerns about U.S. tariffs.
The key index measuring sentiment among major Japanese companies regarding business conditions stood at 4.7 in the survey conducted by the Finance Ministry, a turnaround from minus 1.9 for the April-June quarter.
The business survey index is calculated by subtracting the percentage of companies reporting a deterioration from the percentage of those citing an improvement.
The quarterly survey also showed a reading of 3.8 for the manufacturing sector and 5.2 for the nonmanufacturing sector.
Asked about the outlook for the October-December quarter, major companies remained positive with the index at 4.3.
Around 11,000 companies responded to the Aug 15 survey, conducted after Japan and the United States reached a trade deal that reduced tariff rates to 15 percent for Japanese cars and other products.
While the agreement was not put into writing until early September, the deal helped to dispel uncertainty among Japanese companies about the impact on their businesses and the export-reliant economy, as U.S. President Donald Trump had threatened to impose a 25 percent "reciprocal" duty while the combined auto tariff rate had jumped to 27.5 percent.
Despite the improved sentiment among large companies, smaller firms remained pessimistic, with the index at minus 9.6, according to the survey.
The key index measuring sentiment among major Japanese companies regarding business conditions stood at 4.7 in the survey conducted by the Finance Ministry, a turnaround from minus 1.9 for the April-June quarter.
The business survey index is calculated by subtracting the percentage of companies reporting a deterioration from the percentage of those citing an improvement.
The quarterly survey also showed a reading of 3.8 for the manufacturing sector and 5.2 for the nonmanufacturing sector.
Asked about the outlook for the October-December quarter, major companies remained positive with the index at 4.3.
Around 11,000 companies responded to the Aug 15 survey, conducted after Japan and the United States reached a trade deal that reduced tariff rates to 15 percent for Japanese cars and other products.
While the agreement was not put into writing until early September, the deal helped to dispel uncertainty among Japanese companies about the impact on their businesses and the export-reliant economy, as U.S. President Donald Trump had threatened to impose a 25 percent "reciprocal" duty while the combined auto tariff rate had jumped to 27.5 percent.
Despite the improved sentiment among large companies, smaller firms remained pessimistic, with the index at minus 9.6, according to the survey.
- 15/9 20:54
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