Thursday, 16th December 2010
In Business In Japan,
Japanese business confidence falls
There has been a fall in confidence among Japanese businesses for the first time in two years.
According to the Bank of Japan's tankan survey, many companies have been affected by the strong yen and the slowdown in export levels.
The survey of around 12,000 firms is seen by experts as a key barometer in measuring Japan's economy and has influenced monetary policy in the past.
Despite increasing for six consecutive quarters, the latest tankan index shows a fall from five to eight as more companies report unfavourable operating conditions.
"The Bank of Japan's quarterly tankan survey confirmed that the recovery is fading, with small businesses struggling and investment demand still weak," explained Capital Economics analysts Julian Jessop and Vishnu Varathan to the International Business Times.
Japan's national unemployment rate increased to 5.1 per cent in October compared to five per cent in the previous month.
Written by Mark Smith.