Japanese firms credit foreign demand for recovery<\/p>\n
Agence France-Presse, Tokyo<\/p>\n
Most major Japanese firms credit their own cost-cutting and
\noverseas demand for the country's economic recovery, while
\ngovernment reforms have done little to help, according to a poll
\nin the Asahi Shimbun Sunday.<\/p>\n
Eighty-two out of 100 major firms surveyed said strong
\noverseas demand was the main reason for the recovery, while 77
\ncited internal restructuring, according to the poll of leading
\ncompanies such as Toyota Motor, Canon and IBM Japan.<\/p>\n
Only three firms credited the Bank of Japan's easy monetary
\npolicy for easing deflation worries, the same number who said the
\ngovernment's push to dispose of bad loans had helped boost the
\neconomy.<\/p>\n
"This recovery is due to internal company efforts, not
\n(government) economic stimulus," Aeon Co. Ltd. executive managing
\ndirector Yoichi Kimura told the daily.<\/p>\n
The survey of 50 manufacturers and 50 non-manufacturers was
\ntaken in late May and early June, the paper said.<\/p>\n
The poll showed 70 firms expected revenues to increase in the
\nyear to March from a year ago, while 77 expected recurring
\nprofits to improve.<\/p>\n
Seventy-one said they thought consumer spending would
\ngradually increase, more than double the number who thought so
\njust eight months earlier.<\/p>\n
The survey is the latest indicator of brightness in Japan's
\neconomy, fed by overseas demand for high-tech goods and autos.<\/p>\n
Japan's consumer confidence hit a near 13-year high in May,
\nwith the key index rising 2.9 points from April to 48.3,
\nsupported by better prospects for employment and earnings, the
\nCabinet Office said Friday.<\/p>\n
It followed announcements Thursday that wholesale prices rose
\n1.1 percent, the biggest increase since October 1997, and that
\ncore private sector machinery orders rose 11.8 percent in April
\nfrom a month earlier.<\/p>\n
Japan's gross domestic product grew an annualized 6.1 percent
\nin January-March from the previous quarter, following a 7.3
\npercent rate the quarter earlier, the nation's strongest growth
\nin 13 years.<\/p>",
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