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According to a Reuters Corporate Survey of Japanese firms, most of them felt the government’s $1 trillion economic stimulus plan to battle the coronavirus crisis was insufficient and a little too late.

Key findings

“46% of firms felt the government’s stimulus was somewhat not enough and 29% deemed it quite insufficient, keeping Abe’s government under pressure to top-up last week’s spending package.

While 5% said it was too much, just 21% said it was sufficient and appropriate.

Asked what they want the government and the Bank of Japan to do, many firms chose steps to stimulate private consumption, facilitate corporate financing and boost employment subsidies — all of which were picked by some 40% of firms.

 the virus is having a widespread impact, with 56% of firms reporting their sales and output were dented in March, up from 47% seen in the prior month.

About three-fifth of the companies said their supply chains have been hit, versus the previous month’s survey that found 47% of firms had been affected.

Three-fifth of firms saw no end to the pandemic for the foreseeable future and one-third said it would take several months for the coronavirus impact on their business to be resolved – a jump from a combined share of 65% in the prior month’s survey.

Three fourth of firms would implement only necessary minimum levels of capital spending this fiscal year while only a quarter would maintain or boost business expenditures,

If the pandemic is resolved, 80% would keep or boost investment.”