TOKYO (MNI) – The results of a quarterly survey by the Finance Ministry and
the Cabinet Office conducted Nov 15, covering 15,543 companies capitalized at
Y10 million or over, of which 12,366 replied.
–Japan MOF: Q4 Major Firm Sentiment -5.5 Pt Vs Q3 +2.2 Pt
–Japan MOF: Q4 Sentiment Projected at +5.4 Pt In Q3 Poll
–Japan MOF: Major Firm Sentiment Seen Q1 +1.7 Pt, Q2 +0.4
–Japan MOF: FY12 All Firm Capex Plans +4.1%; +9.8% Q3 Poll
–Japan MOF: FY12 Mfg Capex Plans +6.3%; +15.0% in Q3 Poll
–Japan MOF: FY12 Non-Mfg Capex Plans +2.8%; +6.8% Q3 Poll
–Japan MOF: FY12 All Firm Crnt Profit +1.3%; +5.7% Q3 Poll
FACTORS: Slow demand from overseas and weaker domestic demand continues to
weigh on a recovery in business sentiment. The recent softer yen and stock
market uptick didn’t help. The business sentiment diffusion index for major
Japanese firms posted the first drop since -22.0 points in April-June 2011.
TAKEAWAY: This is a precursor to the Bank of Japan’s Tankan business survey
due out on Friday. The uncertainty over a sustained economic recovery is making
firms cautious about investment plans for the current fiscal year, which will
support an argument for further monetary easing by the BOJ next week.
–MNI Tokyo Bureau; tel: +81 90-4670-5309; email: msato@mni-news.com
[TOPICS: MAJDS$,M$A$$$,M$J$$$]
