According to a recent survey by Nikkei, Japan’s corporate leaders are becoming more cautious about the future of the economy. The survey found that only 50% of respondents believe the economy is “expanding” or “expanding slightly”, down from 72% in the previous quarter. This is the lowest reading since a poll in March 2022, where just 13.1% of respondents felt optimistic. Additionally, 45% of respondents now feel that the economy will remain flat, compared to 20% in the previous survey.
The reasons for this shift in sentiment were identified by the survey. The majority of respondents, 80.3%, blamed flat consumer spending for the lack of economic growth. Stagnation in China was cited by 40.9% of respondents, while persistent labor shortages were pointed to by 37.9%. These findings align with those from a meeting of Japan’s Business and Industry Association (BIJ) held in March, which indicated a slow rate cycle ahead.
The overall tone of the Nikkei survey suggests that Japan’s corporate leaders are becoming increasingly concerned about global economic conditions and labor shortages, which are weighing on their outlook for the future.