Japan business sentiment negative in April-June on high oil prices

TOKYO (Kyodo) — Business sentiment among major Japanese companies in the April-June period was negative for the second consecutive quarter as Russia’s invasion of Ukraine drove oil prices higher, government data showed Monday.

 

 

The confidence index covering firms capitalized at 1 billion yen ($7.4 million) or more logged minus 0.9, compared with minus 7.5 in the January-March period, dragged down by a plunge in auto-related manufacturers at minus 25.4, according to the joint survey by the Finance Ministry and Cabinet Office.

 

The sector was hit by a decrease in production due to parts supply shortages.

 

The figures are calculated by subtracting the percentage of firms reporting worsening conditions from those observing improvements.

 

The index for manufacturers stood at minus 9.9, compared with minus 7.6 the previous quarter, while the index for nonmanufacturers swung back to plus 3.4 from minus 7.4.