About 70 percent of business leaders believe the economy is improving, according to a recent Kyodo News poll.
Twenty-eight top executives of the 112 polled said the economy "remains flat" -- a sharp decline from 85 percent in a similar survey in the summer. In contrast, 78 said it is "expanding moderately," with none suggesting it is "suffering a setback."
The poll, which had a nearly 100 percent response rate with top executives of 110 major firms replying by mid-December, indicates not only improving business sentiment but also optimism for a full recovery in 2004 forecasts, with 75 percent expecting the economy to "moderately expand."
In the survey, which allowed multiple answers, more than half the firms expect a profit rise.
About 39 percent attributed the prospect of a business upturn to "more capital investment by the private sector." About 23 percent cited "expansion in consumer spending," while 35 percent mentioned "expansion in exports to Asia" and 28 percent "expansion in exports to the U.S."
On fiscal 2004 capital spending, 39 percent said they will maintain current levels, while 17 percent will "increase" and 16 percent "decrease" their current levels.
On concerns for next fiscal year, 51 percent worry about further appreciation of the yen against the dollar, 29 percent are unsettled by the likely increase in social security burdens and 18 percent fear a slump in local economies.