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To: lorne who wrote (75233)	8/17/2001 11:01:11 PM
From: lorne	Respond to of 116836

Japan. Poll: 76 of 100 firms see economy in recession Yomiuri Shimbun Corporate business sentiment can be seen to have deteriorated sharply, as 76 out of 100 major companies see the economy retreating into a recession, according to a Yomiuri Shimbun survey released Friday. The results show a steep rise over the 21 firms that made similar answers in the previous survey in April. In the latest survey conducted earlier this month, 65 firms said they see the economy as being in a moderate recession. Eleven firms said the economic situation is rapidly deteriorating. In total, about three-quarters of the companies said that the economy has entered a recessionary phase. Corporate business sentiment deteriorated significantly because their production and exports dropped sharply due to a slowdown in the U.S. economy. Regarding the time needed for the economy to begin to recover, 35 firms said that they saw no prospects of a recovery at the present time, while only one company said that the economy would be on track for a recovery during the current year. As for factors behind the pessimistic economic prospects, most of the companies cited, among other reasons, the slowdown in foreign economies, stagnant consumption, anxiety over the stability of the financial system and falls in stock prices. Meanwhile, 82 companies said they support the government's basic policies for economic and fiscal management recently agreed upon as the guidelines for structural reforms proposed by the administration of Prime Minister Junichiro Koizumi. This indicates that the companies have high hopes for the administration's reform initiative. About 70 percent approved of the compilation of a supplementary budget, and expected the government to take necessary measures to boost the economy. Only 17 companies said their own businesses are in good shape. This figure decreased from 29 in the previous survey. Those who said their businesses are stagnant or deteriorating, however, increased from 10 to 31. With regard to their midterm settlement of accounts reports for fiscal 2001, only 22 companies, or about one-fifth of the total, expect to report increases in both revenues and profits. However, the number of companies that aim to increase investments in plants and equipment in fiscal 2001 rose to 29 from 17 in the previous poll, indicating that some companies are bullish despite the severe economic conditions. Concerning real economic growth in Japan for fiscal 2001, 52 companies said it would be between zero percent to 0.5 percent, a projection close to that of the government, while 29 companies forecast negative growth. yomiuri.co.jp