The survey was supported by:
The Foreign Chambers in Japan (FCIJ) is an informal organization comprised of foreign chambers of commerce and business groups in Japan mainly for the purpose of information exchange and enhancement of the activities of the component organizations.
The FCIJ conducted the first Business Confidence survey in April 2002, based on a format developed by the Finnish Chamber of Commerce in Japan (FCCJ).
This survey, conducted twice a year, is rapidly becoming a barometer of foreign business in Japan.
This, the eighteenth, survey was conducted between October 12 and 22, 2010.
The survey was sent to members at 13 organizations representing about 2,000 foreign affiliated companies and received 287 valid responses.
Participating organizations included the ACCJ (American Chamber), ANZCCJ (Australia-New Zealand Chamber), ABC (Austrian Business Council), BCCJ (British Chamber), BLCCJ (Belgian-Luxembourg), DCCJ (Danish), DIHKJ (German), FCCJ (Finnish), CCIFJ (French), IJCC (Irish), NCCJ (Dutch), SACCJ (South African) and SCCJ (Swedish).
Compared to the previous survey (Spring 2010), this survey shows an uncertainty about the economic situation in Japan, especially in the short term, but the performance of the companies, both in sales and profitability continue to improve.
The Japanese economy for the next 6 months is expected to slightly decline, the index (on a scale from +2 to -2) was now -0.04 (compared to +0.59 in spring 2010), but looking 12 months ahead, the companies see a turn for the better - the index shows +0.17 (+0.79 in the previous survey).
The reported sales performance in the past six months show a significant improvement, +0.64 compared to +0.25 the spring survey. Similarly, the profitability had also improved, +0.63 now compared to +0.23. The sales forecast index for the coming six months was +0.68 (previous survey +0.88) and that for profitability +0.60 (+0.76).
Concerning the strategies of the foreign-affiliated companies in Japan, most of them continue to be rather bullish despite experiencing tough times in the last couple of years. 69% (73% in the Spring 2010 survey) are looking for further growth and 28% expecting to sustain their current level. 2% are planning to downsize, but only 1% (four companies out of the surveyed 287) are considering withdrawing from the market.
This time the two alternating questions were regarding the currency rates (EUR/JPY for Europeans, USD/JPY for the others) and Nikkei index in 6 months time. The average estimate for USD was 84.5.7 and for the EUR 114.1 Nikkei index is predicted to be at 9,898 (slightly above the level when the survey was conducted).
This time the two alternating questions were regarding the currency rates (EUR/JPY for Europeans, USD/JPY for the others) and Nikkei index in 6 months time. The average estimate for USD was 94.7 and for the EUR 129.2 Nikkei index is predicted to be at 11,041 (at the level when the survey was conducted).
To download the full report, click below:
FCIJ Business Confidence Survey Report - Fall 2010 (1.2 Mb)
The report also includes commentary from Dr. William Schrade, Adjunct Faculty, University of Maryland University College: Asia Division.
Download all comments from respondents:
Other reasons for changes in business performance (15 kb)
Comments regarding changes in business performance (18 kb)
Comments regarding strategies in Japan (7 kb)
General comments (17 kb)
The next survey will be conducted in April 2011. The results from that survey will be published early May 2011.
If you need more information regarding the survey, contact your chamber or the FCCJ Office.
Printed versions of the report are also available at the FCCJ Office for a modest fee.
REPORTS FROM PREVIOUS SURVEYS
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