The confidence index of Japan's large manufacturing companies has declined for five consecutive quarters, according to the Bank of Japan's Short-Term Economic Survey released on the 3rd. In the first quarter of this year, the confidence index of Japan's large manufacturing companies continued to slide, dropping 6 points from the previous quarter to 1 point. This marks the fifth consecutive quarter of decline in the confidence index of Japan's large manufacturing companies.
The survey revealed that the increased cost pressure on manufacturing companies in the first quarter was influenced by factors such as the ongoing Ukraine crisis leading to high international energy prices and instability in the semiconductor market. Among all 16 manufacturing industries, 12 industries experienced a decline in confidence among large enterprises, with five industries, including wood and wood products, petroleum and coal products, experiencing a double-digit decline in the confidence index of large manufacturing companies.
On the non-manufacturing side, the confidence index of large non-manufacturing companies increased by 1 point to 20 points in the first quarter, driven by the rebound in industries such as retail and equipment leasing.
The Bank of Japan's Short-Term Economic Survey is released quarterly and serves as an important indicator of Japan's economic conditions. Among them, the confidence index of large manufacturing companies is the most representative. The survey was conducted from February 27th to March 31st and included 9,199 large, medium, and small companies nationwide in Japan.
