Majority of firms expect recovery in 2010

A survey of 108 major Japanese companies found 66 percent of them expect the economy to recover by the first half of 2010.

The survey indicated a growing view that the economy, the world’s second-largest after the United States, is hitting the bottom, reported Kyodo News, which compiled the results.

A government report Monday said the economy in the April-June quarter expanded 0.9 percent from the previous quarter, the first such quarterly growth in more than a year, indicating Japan’s recession may be ending.

The survey, conducted July 23-31 among top managers, found that 71 of the 108 firms expected recovery and said their performance is improving, with rising production coming on the heels of inventory adjustments and cost-cutting efforts.

The survey said 12 of the 71 firms said the economy already is recovering, 15 said they expect a recovery in the latter half of this year and the rest by the first half of next year.

Of the total, 65 companies said their current workforce is appropriate while 36 said they still have surplus workforce.

In a similar survey done between late November and mid-December of 2008, 98 percent said the economy was deteriorating.