World

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
This article is closed for comments.
Please Email the Editor