Nearly 40% of polled firms expecting double-dip recession+

TOKYO, Jan. 3 Kyodo -
Nearly 40 percent of major Japanese companies in a Kyodo News survey said that
the Japanese economy is ''highly likely'' or ''likely'' to fall into a
double-dip recession, according to survey results compiled Saturday.

The survey of 109 leading Japanese companies including Canon Inc., Nippon Steel
Corp., Nippon Oil Corp., Sony Corp., Toyota Motor Corp. and Mitsubishi UFJ
Financial Group Inc., conducted from late November through mid-December, found
that 40 firms, or 37 percent of the surveyed companies, anticipate a further
downturn in economic activity in Japan.
To a multi-reply question about reasons for the gloomy outlook, 26 of the 40
companies attributed it to the yen's appreciation. Twenty-four firms said the
effects of stimulus measures adopted by the government will wane, while 23
referred to deepening deflation.
Asked when they expect a double-dip recession to come, 21 companies said
between January and March and 16 between April and June.
But 56 of the 109 companies, or about 51 percent, said they expect the domestic
economy to stage a full-scale rally in the second half of 2010.
The survey also found that 61 companies see the current economy as leveling off
while 17 said it is slowing down. In contrast, 31 firms regard the economy as
gradually expanding.
With regard to the economic policy of the government led by the Democratic
Party of Japan, 48 companies want to see a clear roadmap toward medium- and
long-term growth.
Among other survey findings, 20 companies are planning to cut back on capital
spending in fiscal 2010, while 33 firms are considering workforce reductions.
==Kyodo
2010-01-03 21:31:20