Jiji Press TOKYO (Jiji Press) — Business sentiment in Japan fell for the seventh straight month in June, a private-sector survey showed Wednesday.
The business sentiment diffusion index dropped 0.3 point from the preceding month to 45.1, standing below the boom-or-bust threshold of 50 for 15 months in a row, Teikoku Databank Ltd. said.
The credit research agency kept its assessment unchanged, saying that the Japanese economy may have entered a recessionary phase.
The manufacturing industry saw its DI decline 0.9 point to 42.0, hampered by sluggish exports amid U.S.-China trade tensions and slowing growth of the Chinese economy. In particular, sentiment among electric machinery makers went down for the ninth consecutive month, due to weak demand for electronic components.
The index for the transportation and warehousing sector was down for the second consecutive month, as traffic controls during the Group of 20 summit in Osaka Prefecture disrupted logistics operations.
The retail sector’s DI climbed for the first time in two months, thanks to a surge in demand for durable goods ahead of the consumption tax hike from 8 percent to 10 percent in October.
Business sentiment fell in eight of the 10 regions, including the Kinki region.