In recent years, Japan’s corporate leaders have become increasingly cautious about the economy. A survey conducted by Nikkei found that optimism among these leaders is declining, with only 50% of respondents expressing positivity about economic growth, compared to 72% in the previous quarter. This represents a sharp decrease in sentiment and is the lowest reading since March 2022, when only 13.1% of respondents felt optimistic.

One of the main reasons for this shift in sentiment is flat consumer spending, which was cited by 80.3% of respondents as a contributing factor to the lack of economic growth. Stagnation in China was also mentioned by 40.9%, while persistent labor shortages were pointed out by 37.9%. These findings suggest that there are a variety of factors at play when it comes to Japan’s corporate leaders’ views on the economy.

The Nikkei survey is conducted quarterly and provides valuable insights into changing attitudes among Japan’s business leaders. The latest findings suggest that caution is becoming increasingly prevalent among these leaders, with concerns about consumer spending, global economic conditions, and labor shortages all weighing on their outlook for the future.