TOKYO, June 11 (Xinhua) -- Sentiment among large businesses in Japan fell in the April-June period, marking the second straight quarter of decline owing to the global chip crunch and a third emergency virus period, the government said in a report Friday.
According to a survey conducted by the Finance Ministry and Cabinet Office, the confidence index related to firms capitalized at 1 billion yen (9.14 million U.S. dollars) or more dropped from minus 4.5 in the January-March period to minus 4.7, with the reading in negative territory for a second straight quarter.
Sentiment deteriorated as the global shortage of semiconductors adversely affected the production of automobiles, as well as output in other industries, informed sources said.
They added that the COVID-19 pandemic has led to an increase in demand for home electronic appliances, as more people work, study and spend an increased amount of time at home. These include laptop computers and game consoles, both of which use chips.
Such has been the demand, while a drop in supply of semiconductors punctuated by a fire at a Renesas Electronics Corp. factory here in March has left the auto industry struggling.
The government's survey showed that the index for manufacturers dropped to minus 1.4 from plus 1.6 in the previous quarter in the reporting period, with the figure, for the first time in four quarters, turning negative.
The index for non-manufacturers, meanwhile, increased to minus 6.2 from minus 7.4, the survey also showed.
Japan's third COVID-19 state of emergency also dented sentiment, as under the emergency measures, bars and restaurants were requested to stop serving alcohol and close by 8 p.m., while business people were urged to work from home and the general public asked to refrain from making unnecessary trips outdoors.
Japan has been grappling with a fourth wave of COVID-19 infections and its third state of emergency initially covered Tokyo and three other prefectures from April 25 and was set to expire on May 11.
It was subsequently extended to cover 10 prefectures with the deadline extended to June 20 in bid to curb the spread of the virus and its highly transmissible variants.
Sentiment among large firms looking ahead, however, is set to improve according to the survey, with the index forecasting business conditions in the three months through September reading plus 7.7, and 8.4 for the following quarter. Enditem
