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 upbeat
- 50% 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 spending
- stagnation 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.
