Japan’s corporate leaders are becoming increasingly pessimistic about the state of the economy, according to a recent survey by Nikkei. The survey found that only 50% of respondents believe the economy is “expanding” or “expanding slightly”, down from the previous quarter’s 72%. This marks the lowest percentage since March 2022, when only 13.1% expressed positivity. In addition, 45% of respondents now feel that the economy will remain flat, up from just 20% in the previous survey.
The Nikkei survey identified several factors contributing to this shift in sentiment. The majority of respondents, 80.3%, blamed flat consumer spending for slow economic growth. Stagnation in China was cited by 40.9%, while persistent labor shortages were mentioned by 37.9%. The survey is conducted quarterly by Nikkei and provides insights into changing attitudes among Japan’s corporate leaders.
The summary of the March BIOJ meeting also indicated a slow rate cycle ahead, which aligns with the findings of the Nikkei survey. The overall tone of the survey suggests growing caution among Japan’s corporate heads, with concerns about consumer spending, global economic conditions, and labor shortages weighing on their outlook for the future.