Outlook and performance show “significant improvement”
The latest Foreign Chambers in Japan (FCIJ) survey, published on 13 May, shows improvements, in many cases rather significant, regarding the outlook for the Japanese economy and the performance of the respondents. The previous survey was conducted in autumn 2009.
The economy for the next six months is expected to further improve +0.59 (compared to +0.25 in autumn 2009). Looking 12 months ahead, the firms see a continued turn for the better — the index showing +0.79 (+0.66 in the previous survey). Even more important, the forecasts for the coming six months for sales and profitability both show notable growth. The sales forecast index was +0.88 (previous survey +0.47) and that for profitability +0.76 (+0.40). Only 7% expect some or a strong decline in sales and only 8% anticipate profitability, while 89% and 73% see strong or some improvement, respectively. Concerning the strategies of the foreign-affiliated firms in Japan, most respondents continue to be rather bullish despite experiencing tough times over the past year or so. Some 73% (66% in the autumn 2009 survey) are looking for further growth, while 23% are expecting to sustain their current levels. In addition, 3% are planning to downsize, but only 1% (four firms) are considering withdrawing from the market. These results show a fairly strong improvement in optimism compared to the findings of the previous survey.
The poll received 396 valid responses. The next survey will be in October 2010.
For a full report: www.fcc.or.jp/fcij/bcs.htm
This survey has been supported by: Premier Worldwide Movers