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Tokyo, 01 – The confidence of major Japanese companies is still declining in the second quarter, after a decline between January and March this year, according to the Tankan survey conducted by the Bank of Japan (BoJ) English).
The leading indicator measuring the sentiment of big business owners rose to 21 in the second quarter from 24 in the previous quarter. Economists consulted by Nikkei Quick were expecting a reading of 22. The index represents the difference between the percentage of companies that say the conditions are favorable and the percentage of companies that say that the conditions are not favorable.
Donald Trump, threatens to impose tariffs on vehicle imports. If it is put into practice, the plan will have a significant impact on the Japanese economy. In 2017, nearly 40 percent of Japanese car exports went to the United States, according to the country's automakers badociation.
According to the Tankan survey, large companies predict that profits will decline by 8%, 6% over the year ending in March 2019, on the basis of the dollar scenario trading at 107.26 yen on average over the period.
Despite this, the survey showed some positive signs. Large Japanese companies plan to increase their investment spending by 13.6% during the current fiscal year, well above the 2.3% recorded during the first three months of the year. year.
(Dow Jones Newswires)
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