Japan Biz Sentiment Turns Lower in April

May 8, 2018

Tokyo- Business sentiment in Japan dropped for the first time in two months in April, a Teikoku Databank Ltd. survey showed Monday.

The business sentiment diffusion index fell 0.6 point from the previous month to 49.8, standing below the boom-or-bust threshold of 50 for the first time in six months, the private credit research agency said.

The fall mainly reflected a decrease in public works projects and increases in personnel and materials costs.

All 10 surveyed sectors logged weaker sentiment.

The DI dropped 1.5 points to 51.4 in the construction sector, down for the fourth consecutive month, and 0.6 point to 51.0 in the manufacturing sector, the third straight decline.

The index for the real estate sector slipped 2.2 points to 50.9, the first fall in two months, mainly because financial institutions curbed loans to the industry.

Business sentiment deteriorated in nine of the country's 10 regions. The Hokuriku central Japan region was the only exception, enjoying a continued improvement after a decline in February due to heavy snowfall.

"Attention should be paid to risk factors, including escalating trade conflict between the United States and China, that may put downward pressure on the Japanese economy," a Teikoku Databank official said.

The survey was conducted on April 16-30. Valid responses were received from 9,924 companies. Jiji Press