Japan's big manufacturing business conditions index sees biggest drop in more than 30 years

Tokyo, December 15th. The Bank of Japan - The Bank of Japan's latest short-term economic observation survey of enterprises released on December 15th shows that the situation index reflecting the feelings of large manufacturing companies on the current economic situation - 'The Bank of Japan Tankan' 'The biggest drop in more than 30 years. In the last survey conducted in September, the Situation Index of large manufacturing companies was negative 3. This time it plummeted to negative 24, a drop of 21 points. It has fallen for five consecutive quarters, and the decline is the largest since 1975. Highest record. The evaluation index for the feeling of the economy three months later fell to minus 36, indicating that due to the impact of the financial crisis, the earnings of Japan's large manufacturing enterprises tended to deteriorate, and the worry about the global economy falling into recession was further deepened. From the perspective of industry distribution, the sense of situation in all industries is deteriorating, and the automobile manufacturing, machinery, electrical appliances and other industries that rely heavily on overseas markets have deteriorated especially against the backdrop of recession in major markets and appreciation of the yen. The survey also showed that compared with the previous year, in the current fiscal year, which will end in March next year, the equipment investment plans of large Japanese manufacturing companies increased by 2.4%, which was the same as the 5.6% survey result in September. There is a significant decrease in comparison. The BOJ Tankan Index is the result obtained by subtracting the proportion of companies that are optimistic about the industry's prosperity minus the proportion of companies that are not optimistic. A positive number indicates that there are more optimistic companies than pessimistic companies. This indicator is one of the main basis for the Bank of Japan to judge the economic situation and formulate financial policies.