87% of Major Japanese Firms are Optimistic About 2015

Eighty-seven percent of 111 major Japanese firms polled by Kyodo News expect Japan’s economy to expand in 2015, showing growing optimism emerging after two quarters of contraction following last April’s consumption tax hike.

Among the 97 companies expecting an expansion, 90 see moderate growth and seven strong growth. Thirteen project a leveling off, and one firm give no prediction. None forecast a contraction.

Of the bullish companies, 44 cited a nonresidential investment recovery as a major factor. Forty firms cited U.S. economic improvement and 36 private consumption.

In the poll conducted in early and mid-December, 56 companies said the adverse effects of the consumption tax hike have been greater than expected, while 58 believe private consumption has already recovered or will recover by March.

Thirty-seven companies forecast the yen’s depreciation will have positive impacts on their operating profits in fiscal 2014, which ends in March 2015, while only nine view the weakening yen as making a negative contribution to their profits.

Thirty firms have failed to pass raw material price hikes caused by the weaker yen on to their product prices.

via Mainichi

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