Japan’s Corporate Confidence Plunges

Nearly two-thirds of Japan’s companies have been negatively affected by the country’s massive earthquake and tsunami.

Disrupted production and supply chains are the key problems, which also sent corporate confidence in Japan to a record low in April.

According to a Reuters poll of 400 large Japanese firms, business confidence fell back into negative territory for the first time this year.

The gloom was widespread, spreading through both manufacturing and services sectors.

Nearly 70 percent of the respondents say the single biggest problem for them is the lack of supply.

Manufacturers like auto firms have been forced to scale back output locally and globally.

Toyota, for example, is planning to stop production at five plants across Europe for several days in April and May due to a lack of supplies shipped from Japan.

Power shortages are also an issue for many firms.

Consumer technology giant Sony is considering a two-week summer shutdown of some company premises, as well as its own daylight savings time to conserve energy.

Foto: NTD