December 14, 2012
Summary
◆The DI of current business conditions for large manufacturers was -12 points, substantially worsening from the previous survey (-3) and short of consensus expectations (-10). The current DI of supply and demand conditions for products worsened for both overseas and domestic markets, pulling down the business condition DI.
◆The DI of current business conditions for large non-manufacturers was +4 points, worsening from the previous survey (+8) and short of consensus expectations (+5). DIs for business service providers and wholesalers worsened amid a slowdown in exports and production. DIs softened from a firm trend for household-related industries.
◆The FY12 capex projection (incl. investment in properties but excl. that in software; all industries, large companies) was +6.8% y/y (revision rate from previous survey: +0.4%), contrasting to consensus expectations of a downgrade to +5.4% y/y. While manufacturers saw a downgrade from the previous survey, the upgrade for non-manufacturers pushed up the overall capex projection. Despite concerns over a downswing in capex due to a persistent deceleration in exports and production, the capex projection was firm.
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