Optimism amongst Japan’s corporate heads is dissipating according to a regular survey by Nikkei:
50% of respondents say the economy is “expanding” or “expanding slightly”, down sharply from the previous quarter’s survey where 72% were upbeat50% is the lowest reading since March 2022 poll (which hit only 13.1% optimistic)45% said the economy will remain flat (from 20% in the previous poll)
Reasons for the dour swing included:
80.3% blamed flat consumer spendingstagnation in China was cited by 40.9%37.9% cited persistent labor shortages
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Nikkei’s survey is conducted quarterly
Yesterday the Summary of the March BIOJ meeting indicated a slow rate cycle ahead. This survey points that way also.
Bank of Japan Summary – rate hikes ahead will be slow to come
This article was written by Eamonn Sheridan at www.forexlive.com.