Japan business confidence at lowest since 2009 due to virus crisis

Japanese manufacturers’ confidence dropped in the second quarter to levels not monitored since the global financial crisis of 2009. This highlighted the damage that the novel coronavirus crisis inflicted on the export-dependent economy.

The headline index for big manufacturers’ sentiment was seen at -34 in June. This came to be the sharpest level the index had reached since 2009 as it placed lower than the -31 median market forecast. The 26-point drop seen in March came to be the second-fastest drop ever recorded.

The index for big non-manufacturers’ sentiment dropped a total of 25 points to -17 in June, also the sharpest record since December 2009. Moreover, large firms foresee a 3.2% increase in capital expenditure in the year to March 2021. This placed above the market estimates of a 2.1% jump but below the plans made three months earlier.