Japan’s CEOs less upbeat on the economy, cautious ahead of wage hikes kicking in

Optimism amongst Japan’s corporate heads is dissipating according to a regular survey by Nikkei:

• 50% of respondents say the economy is “expanding” or “expanding slightly”, down sharply from the previous quarter’s survey where 72% were upbeat
• 50% is the lowest reading since March 2022 poll (which hit only 13.1% optimistic)
• 45% said the economy will remain flat (from 20% in the previous poll)

Reasons for the dour swing included:

• 80.3% blamed flat consumer spending
• stagnation in China was cited by 40.9%
• 37.9% cited persistent labor shortages

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Nikkei’s survey is conducted quarterly

Yesterday the Summary of the March BIOJ meeting indicated a slow rate cycle ahead. This survey points that way also.

• Bank of Japan Summary – rate hikes ahead will be slow to come

This article was written by Eamonn Sheridan at www.forexlive.com.