Japan business sentiment turns negative in Apr.-Jun. quarter
A government survey shows that business sentiment at major Japanese firms has turned negative for the first time in five quarters. This comes amid concerns about the impacts of new US tariffs.
The index of business conditions came to minus 1.9 for the three months through June.
A negative result indicates that a majority of companies feel business conditions have worsened.
About 11,000 companies responded to the quarterly survey by the Finance Ministry and the Cabinet Office.
The index for manufacturers stood at minus 4.8, marking a second straight quarter with a negative figure.
This reflects worries about the impact of the US tariff policy spreading in the auto and steel sectors.
But the index is projected to swing back to positive territory in the July to September period. Robust demand in the chip sector and brisk inbound tourism will likely push it up to 5.2.
Ministry officials say that they will keep a close watch on the impacts of the US trade policy and rising prices on businesses.
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