Business sentiment turns negative

Business sentiment turns negative

Business sentiment at major Japanese firms in the April to June period turned negative for the first time in a year.

The Finance Ministry and the Cabinet Office survey covered about 16,000 companies.

The survey showed that the index stood at minus 2.

The figure indicates that more companies feel business has worsened compared with the previous 3 months.

Negative sentiment was stronger among manufacturers. This is due to an increase in prices of materials and parts for automobiles, and sluggish sales of smartphone components.

But, the sentiment is expected to turn positive in the coming months. The index is forecast at plus 6.9 for July to September, and plus 7.9 for October to December.

Finance Ministry officials maintain the view that Japan's economy continues to recover moderately as corporate investment remains positive.