Japan’s business sentiment down after sales-tax hike

DPA Tokyo | Updated on July 01, 2014 Published on July 01, 2014

Confidence among large Japanese manufacturers fell in June for the first decline in six quarters due to a tax increase and slowing exports, the Bank of Japan’s Tankan survey showed on Tuesday.

The closely watched index in the quarterly survey dropped by 5 points since March to plus 12 after the government raised the national sales tax on April 1 from 5 per cent to 8 per cent.

A positive number indicates optimists outnumber pessimists.

Large manufacturers expect the index to edge up to 15 in the next quarter.

The index for large non-manufacturers also declined to plus 19 from plus 24, the survey showed.

Large corporations in the manufacturing and non-manufacturing sectors plan to boost capital investment by 7.4 per cent for the current financial year through March 2015, according to the survey.

Published on July 01, 2014
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