The quarterly Business Sentiment Index survey for Q2, conducted by the Japanese Ministry of Finance and the Economic and Social Research Institute (a part of Japan’s Cabinet office), showed Thursday that the business morale among large Japanese companies crumpled to the lowest in 11 years.
Key findings
“Business sentiment among large Japanese companies minus 47.6 vs.-10.1 in Q1.”
“The worst result in 11 years.”
“3rd quarter in a row in negative territory.”
“For medium-sized companies, negative 54.1 and for mid- to small-companies minus 61.1, both the index at their worst ever.”
“This survey analyses business leaders’ assessments of and forecasts for the economy.”
“Its purpose is to get information for tracking economic trends.”
It covers about 15,000 companies that have established their headquarters or principal offices in Japan and have a capital stock of 10 million yen or more.”
Market reaction
The yen remains on the front foot so far this Thursday amid risk-off action on the Asian equities, with USD/JPY battling 107.00. The above dire outlook adds to the strength in the local currency.
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