Survey: Over 60% of Japan firms negatively impacted by weak yen

More than 60% of rms from a wide range of industries said the yen’s depreciation over the past six months had a negative impact on their business performance, according to a survey by e Yomiuri Shimbun and Teikoku Databank Ltd.

e rate of rms that said the weak yen positively a ected their performance stood at 4.6%.

e survey was conducted to assess the impact of the weak yen on corporate sales and profit.Of the 11,503 small, midsize and large companies that responded to the survey, 28.2% answered that the yen’s sharp drop had a “signi cant negative impact” and 33.4% said it had a “somewhat negative impact.”

By industry, more than 80% of companies in the “textiles, textile products, clothing wholesaling,” “food and beverage, feed manufacturing,” and “eating and drinking establishment” categories responded that they su ered a negative impact.

Many of those industries are vulnerable to the weak yen pushing up import prices of raw materials such as grains, lumber and fuel.

A total of 4.6% of companies answered that the yen’s depreciation was “very positive” or “somewhat positive” for their business, with more than 10% of companies in the “chemical manufacturing” and “machinery manufacturing” sectors saying they saw favorable e ects. Such rms said their products have become more price competitive compared to those made in foreign countries.

Companies in the real estate sector said they have been receiving a number of inquiries about Japanese real estate, which has become undervalued from the perspective of foreign

investors.

More than 20% of companies answered they were “not sure of” or “una ected by” the impact of the weak yen. A majority of these companies are in the “nance” and “hotels and inns” sectors whose mainstay business is based domestically.

With rising prices putting pressure on household nances, 61% of rms responded that they “plan to raise wages in the future.”

e survey was conducted via the internet from July 15-31, targeting 25,723 small, midsize and large companies nationwide. e response rate was 44.7%. (Aug. 17)

Yomiuri Shimbun file photo Containers are seen at Yokohama Port in January.