Smaller Japanese Firms' Sentiment Hits 3-Year Low

Tokyo, April 30 (Jiji Press)--Business sentiment among small and midsize companies in Japan dropped to its lowest level in over three years in April, affected by materials supply concerns caused by Middle East tensions, the Japan Chamber of Commerce and Industry said Thursday.

The diffusion index for smaller firms' current business conditions fell 1.9 points from the previous month to minus 21.9, the lowest since minus 23.3 marked in September 2022 during the COVID-19 pandemic, the JCCI said in a survey report.

The DI for business conditions outlooks for May through July stood at minus 27.

A close watch is needed to see whether shortages and price increases in naphtha will continue, the JCCI said.

The current conditions DI among construction firms fell 8.9 points to minus 24.4. Sentiment also worsened among manufacturers and retailers. The DI for the service industry was almost flat thanks to growing travel demand.

[Copyright The Jiji Press, Ltd.]