Japan’s Corporate Heads Less Optimistic About Economy, Reveals Nikkei Survey

Japanese CEOs are more pessimistic about the economy, exercising caution leading up to upcoming wage increases.

A recent Nikkei survey has revealed a decline in optimism among Japan’s corporate heads. In the survey, only 50% of respondents believed that the economy is “expanding” or “expanding slightly”, a sharp decrease from the previous quarter where 72% were positive about the economy. This represents the lowest reading since March 2022, where only 13.1% of respondents felt optimistic.

Furthermore, the survey found that 45% of respondents believe that the economy will remain flat, a significant increase from the previous poll’s 20%. The reasons for this shift in sentiment include flat consumer spending (80.3%), stagnation in China (40.9%), and persistent labor shortages (37.9%).

The Nikkei survey is conducted quarterly and provides insights into Japan’s corporate leaders’ sentiment towards the economy. Additionally, the Summary of the March BIOJ meeting indicated a slow rate cycle ahead, further reinforcing this downward trend in optimism about Japan’s economy.

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