Japan’s Business Leaders Grow More Pessimistic About Economy as Consumer Spending Flattens, Survey Finds

Japan’s corporate leaders are becoming increasingly pessimistic about the country’s economy, according to a recent survey by Nikkei. The survey found that only 50% of respondents believe the economy is “expanding” or “expanding slightly,” a sharp decrease from the previous quarter’s survey where 72% expressed positivity. This 50% reading is the lowest since a poll in March 2022, which had only 13.1% of respondents feeling optimistic.

The majority of respondents, 80.3%, blamed flat consumer spending for the lack of economic growth. Stagnation in China was cited by 40.9% of respondents, while 37.9% pointed to persistent labor shortages as contributing factors. The survey also indicated that concerns about global economic conditions and consumer spending are weighing heavily on Japan’s corporate heads.

Nikkei conducts this quarterly survey to provide insights into the changing attitudes of Japan’s corporate leaders, and their findings align with those of other experts who predict a slow rate cycle ahead. Overall, the summary of the March BIOJ meeting suggests that there is a growing sense of caution among Japan’s corporate heads, with concerns about consumer spending, global economic conditions, and labor shortages all playing a role in shaping their outlook for the future.