Nearly one in two major Japanese companies expect the economy to return to a recovery track within about three months after the country’s consumption tax was raised to 8 percent from 5 percent on April 1, a survey by the Mainichi Shimbun released on April 29 shows.
The Mainichi survey of 120 major companies shows that an increasing number of firms tends to believe that the economy is leveling off due to the sales tax hike. Fifty-nine companies, or 49.2 percent, said the economy would “return to a recovery track within about three months,” suggesting that the economic slowdown is temporary. The bullish outlook is largely based on expectations for economic recovery abroad, mainly in the United States, as well as the growth strategy to be compiled by the government in June.
The survey was conducted from mid-April through late April. A total of 48 companies, or 40 percent, said that the economy is “leveling off,” “slightly receding,” or “receding,” — a sharp increase from 3.2 percent registered in the previous survey conducted in December 2013.