Japan’s Business Survey Index at nine-year low amid coronavirus fallout

By Daniel Brightmore
Large Japanese manufacturers’ business sentiment fell to a near nine-year low in January-March, suggesting widening fallout of the coronavirus outbrea...

Large Japanese manufacturers’ business sentiment fell to a near nine-year low in January-March, suggesting widening fallout of the coronavirus outbreak on an economy already struggling to keep a recovery on track.

Manufacturers foresee conditions remaining depressed in the following quarter, the government survey compiled in February showed, adding pressure on policymakers to roll out more measures to navigate the coronavirus crisis.

The business survey index (BSI) of sentiment at large manufacturers stood at minus 17.2 in January-March, the lowest reading since April-June 2011. It compared with negative 7.8 in the prior three months, reports Reuters.

The index, jointly compiled by the Ministry of Finance and a research arm of the Cabinet Office, is expected to jump to minus 5.5 in April-June, still hovering in contraction.

SEE ALSO:

China February factory activity contracts at record pace as coronavirus bites

Apple supplier Foxconn's revenue hit by coronavirus

Accenture: top four innovation challenges in manufacturing

Read the latest issue of Manufacturing Global here

The coronavirus weighed on exports to China and inbound tourism, a government official told a news briefing. He added that surveyed firms said they were being affected by the virus, or thought they will be in the future. 

Japan’s policymakers remain under pressure to support growth as a surge in the yen and fears of the impact from the coronavirus cast darkening clouds over the economic outlook.

For more information on manufacturing topics - please take a look at the latest edition of Manufacturing Global.

Follow us on LinkedIn and Twitter.

Share

Featured Articles

India’s smart manufacturing electric vehicle future

Indian IT service Panache Digilife has announced a manufacturing and supply chain agreement with electric vehicle manufacturer Revamp Moto

Manufacturing a legacy of safety, sustainability, and skill

Michael Vale, Group President for 3M’s safety & industrial business, explores diversity & environmental stewardship in manufacturing

5 minutes with: Simon Michie, Pulsant CTO

Simon Michie, CTO at Pulsant, explains why edge computing will transform manufacturing operations, but success will depend on having partnerships in place

Microsoft’s Çağlayan Arkan explores the supply chain

Procurement & Supply Chain

Elisabeth Brinton on the Microsoft Cloud for Sustainability

Technology

Aiimi’s Head of Solution Engineering Matt Eustace on risks

AI & Automation