Japan business sentiment dives to 11-year low in April to June

Linda J. Dodson

TOKYO — Business sentiment among large Japanese companies in the April-to-June period fell to minus 47.6, the worst result in 11 years and pointing to intensifying pressure on an economy hit by the worldwide impact of the coronavirus on both manufacturing and non-manufacturing sectors.

The confidence index covering companies capitalized at 1 billion yen ($9.3 million) or more sharply dropped from an already negative minus 10.1 in the previous survey for January to March, according to the joint survey by the Finance Ministry and Cabinet Office. The index has now registered negative growth for the past three quarters in a row.

The latest reading was the lowest since the January-to-March period of 2009 when Japan’s economy was reeling from the effects of the global financial crisis.

The index for medium-sized companies, capitalized at less than 1 billion yen but more than 100 million yen, recorded a negative 54.1, while mid- to small-companies capitalized at less than 100 million yen but more than 10 million yen came in at minus 61.1. The results for both were the worst ever recorded.

The survey was conducted on May 15 when the government had started considering lifting states of emergency imposed on the country to limit the spread of the coronavirus.

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