Major Japanese Companies Expect Economy Expansion: Survey

Major Japanese companies expect economy expansion: survey

TOKYO, Jan. 4 (Xinhua) — Four out of five major Japanese firms expect the economy to continue expansion for another six months at least, a recent survey conducted by Kyodo News indicated.

Of the 100 large Japanese companies surveyed, 33 say that the current expansion will continue until the second half of 2006 and 49 predict the expansion to last till 2007 or even longer, citing possible rises in corporate profits and consumer spending.

If continued until November 2006, the current business uptrend would be the longest in postwar Japan, beating a 57-month record between October 1965 and July 1970, said Kyodo.

According to the survey, conducted in December with top executives at companies such as Toyota Motor Corp., Sony Corp. and Mitsubishi UFJ Financial Group Inc., three companies believe the Japanese economy will expand strongly and 92 companies expect it to remain on a mild recovery track.

A New Year survey conducted by the Yomiuri Shimbun also showed that Japanese business leaders are optimistic about the future. Out of the 30 chiefs of top companies surveyed, three expect the economy on track for a full-scale recovery, and 25 believe it is heading gradually toward a full recovery.