Japanese SME business sentiment hits three-year low

Tokyo (ANTARA) - Business sentiment among small and medium-sized enterprises in Japan has fallen to its lowest level in more than three years in April, amid increasing concerns over supply disruptions for energy and raw materials due to the Middle East conflict, the Japan Chamber of Commerce and Industry (JCCI) said on Thursday (30/4). The diffusion index for current business conditions among small companies declined by 1.9 points from the previous month to minus 21.9, the lowest since September 2022 when it reached minus 23.3. This indicates that the number of companies reporting worsening conditions now exceeds those experiencing improvements, according to JCCI’s latest survey. The most notable decline in sentiment was observed among construction companies, as well as manufacturers and retailers. The diffusion index for business condition prospects from May to July stands at minus 27. JCCI warns that close monitoring is needed to assess whether shortages and price increases in naphtha will continue.