Dhaka, Bangladesh
Japan business confidence drops in April

Japan business confidence drops in April

TOKYO, Apr 13: Confidence among Japan’s biggest manufacturers fell sharply this quarter, the Bank of Japan’s quarterly business survey showed Monday, suggesting a stuttering recovery for the world’s third-largest economy, reports AFP. The central bank’s April Tankan report — a quarterly survey of about 10,000 companies — showed a reading of 12 among major manufacturers, a steep fall from 19 in the previous quarter. Economists say a slowdown in the Chinese economy was partly to blame, with worries that a rise in crude oil prices could eat into profits also weighing on business confidence. The index for non-manufacturers slipped to 21 from 24 in the previous quarter. The Tankan report, the broadest indicator of how Japan Inc. is faring, marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable. Japan’s economy grew a modest 0.5 percent quarter- on-quarter at the end of last year. However, the cabinet office has recently revised down its judgement on the economy as a separate business confidence index declined in January for the third straight month. Analysts have also warned that US-led trade wars could be a major risk factor for the Japanese economy still struggling to win a long battle against deflation. The E-commerce Logistics Index (ELI) for March came in at 110.2, up 1.2 points from a month earlier, according to the China Federation of Logistics and Purchasing. The sub-indexes of total business volume, rural business volume, logistics timeliness, order fulfillment rate, customer satisfaction, costs and industry practitioners all increased from a month earlier, while those of inventory turnover rate and actual load rate of freight vehicles decreased. The index of total business volume reached 126.5 in March, up 0.6 points from a month earlier, indicating a steadily rising demand for logistics services, with central China posting the highest expansion of 4.2 points from a month earlier. The indexes of logistics timeliness, order fulfillment rate and customer satisfaction grew by 1.6, 2.3 and 3.1 points respectively. The index of inventory turnover rate came in at 102.1, down 2.1 points from a month earlier but approximately the same compared with last March. Analysts with the federation attributed the mild decline to stock replenishment after the Spring Festival in preparation for later peak season sales promotion. The index of actual load rate of freight vehicles went down from a month earlier but was still 3 points higher than the same period last year, said the report. These figures showed logistics efficiency remained on good levels, it said. The index concerning industry practitioners stood at 102.6, up 2.3 points from a month earlier but staying at low levels of around 100 for 3 consecutive months, which indicated a lingering shortage of human resources. Wang Wei, director of Market Economy Research Institute of Development Research Center of The State Council, attributed the mild growth of e- commerce logistics to increasing household consumption and sales promotion activities on Women’s Day. But the continuous high costs and labor shortage would restrict the performance in logistics timeliness, order fulfillment and customer satisfaction, Wang said.

Share |