Japan corporate bankruptcies rise 6.6 pct in April

TOKYO, May 13 (Xinhua) -- The number of corporate bankruptcies with liabilities of at least 10 million yen (about 63,375 U.S. dollars) in Japan rose 6.6 percent from a year earlier to 883 in April, a credit research company survey showed Wednesday.

Corporate failures attributed to rising prices reached the third-highest level on record at 85, as the yen's weakness pushed up costs for imported raw materials and energy, Tokyo Shoko Research said.

Besides inflation-driven cost increases, rising labor expenses and higher interest rates are gradually eroding corporate profits, leaving a growing number of companies facing greater cash flow pressures, the survey said.

In addition, supply-side impacts from naphtha shortages and surging crude oil prices stemming from the Middle East conflict have also heightened concerns.

An official at the research firm said the business environment "will become even more severe" if disruptions in the Strait of Hormuz linger, raising the possibility that bankruptcies could trend upward into the summer months.

By industry, bankruptcies rose year on year across seven sectors, including construction, manufacturing, and wholesale.

The construction sector registered a 21.7 percent jump to 185 cases, reflecting weaker home-buying demand, partly due to soaring property prices and elevated mortgage rates.