Japan's large manufacturers' confidence plunges in Q2: MOF

09:56, June 14, 2011      

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Japan's large manufacturers' business confidence tumbled in the three months to June from the previous quarter, a survey from the Ministry of Finance showed Tuesday.

According to the ministry's quarterly Business Outlook Survey, pessimism among sizable businesses grew following the March 11 quake and tsunami that damaged manufacturers's facilities in the northeast and disrupted nationwide supply chains.

The business survey index (BSI) of sentiment at large manufacturers stood at minus 23.3 in the April-June quarter, compared with minus 3.2 in January-March and that of non- manufacturing came in at 21.4, from a reading of 0.0 in the previous quarter, the ministry said.

Overall industries with a capitalization of 1 billion yen (12.5 million U.S. dollars) or more stood at minus 22.0 in the recording period, plunging from minus 1.1 in the previous quarter, as the negative impact of the quake, tsunami and subsequent nuclear crisis battered business confidence, the survey showed.

The quarterly survey excludes some businesses in the worst- affected northeast regions of Japan directly hit by the March disaster, as some data was unavailable, the ministry said.

The BSI measures the percentage of firms that foresee their business environment improving from the previous quarter minus the percentage that expect it to worsen in the coming months.

The survey is considered a prelude to the central bank's closely watched and highly anticipated tankan business sentiment survey set to be released by the Bank of Japan on July 1.

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