YOMIURI SHIMBUN URGES STIMULUS AS JAPAN BUSINESS CONFIDENCE SINKS
In an editorial on July 2, 2020, the Yomiuri Shimbun urged the Japanese government to swiftly implement stimulus budgets as Tankan sinks to lowest levels, particularly the diffusion index that measures business confidence.
“Worsening business sentiment due to the spread of the novel coronavirus has become evident. It is hoped that the public and private sectors will work together to overcome the crisis,” the editorial stressed.
“The index for large manufacturers, whose export rates are high, fell 26 points to minus 34 from the previous survey. This is the lowest level in 11 years since June 2009. The index for large non-manufacturers, which are driven mainly by domestic demand, dropped 25 points to minus 17, the lowest level since December 2009. The 25-point reduction since the previous survey is the largest in its history,” the Yomiuri Shimbun editorial revealed.
“Domestic and foreign demand has plummeted due to the spread of infections worldwide, and many industries have been severely damaged. It can be said that this reflects the current serious situation of the Japanese economy… The drop in the automobile industry, in which global sales plunged, was noticeable. The index dropped 55 points to minus 72. Regarding the domestic demand-related category, the index for accommodation and eating and drinking services was minus 91, and that of services for individuals, including entertainment facilities such as amusement parks, was minus 70. Small and midsize companies also showed a serious decline. The index for manufacturers in this category was minus 45, while that for non-manufacturers was minus 26,” the editorial concluded.