7 June 2001, 16:20 Japan's MoF says Q2 diffusion index hit by IT slowdown; rebound seen in H2
TOKYO (AFX-ASIA) - A Ministry of Finance official said the
all-industry diffusion index was hit by the worldwide slowdown in
demand, particularly in information technology, but firms expect a
rebound in the second half.
The official said the all-industry index level for the second
quarter of minus 12.1, compared with a rise of 1.2 in the first
quarter, was the first negative number since the third quarter to
December 1999, when it was minus 3.9.
"Companies, especially manufacturers, believe underlying business
conditions are deteriorating amid a worldwide slowdown in the
information technology sector," he said.
However, he added that the majority of firms expect the decline to
be temporary, noting the positive outlook for the all-industries index
in the third quarter.
"It seems to me that firms are expecting business conditions to
improve from the third quarter to September," the official said.
The all-industries index for the third quarter came in at plus 0.2
pct and for the fourth quarter at plus 4.6.
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