Over 60 Pct of Japan Firms in U.S., Canada See Profit in 2022

Economy

New York, Dec. 21 (Jiji Press)--Over 60 pct of Japanese companies doing business in the United States and Canada expect to be profitable this year, the Japan External Trade Organization said in a survey report Tuesday.

The proportion of Japanese companies in the United States expecting to make a profit rose 5.1 percentage points from the previous year to 64.3 pct. In Canada, the share rose to 71.0 pct from 67.5 pct. Both figures were short of levels in 2019, before the COVID-19 pandemic.

The diffusion index for business sentiment among Japanese companies in the United States fell sharply to 17.5 from 34.7 in the previous year due to higher materials and parts costs. In Canada, the index rose 2.6 points to 18.4.

The survey showed that 48.7 pct of Japanese companies in the United States and 43.1 pct of those in Canada plan to expand local operations in a couple of years, both up from 2019 levels.

Over 50 pct of Japanese companies both in the United States and Canada plan to review their supply chains, citing the need to address high costs and possible supply disruptions.

[Copyright The Jiji Press, Ltd.]

Jiji Press