JFSME Survey Shows Improvements
The Japan Finance Corporation for Small and Medium Businesses announced results from its business conditions survey of 13 thousand firms, of which half responded (日経). Overall, the diffusion index (DI) for the summer quarter was minus 1.8 points, 0.3 points smaller than the year-earlier period and representing the first improvement in three periods. While the impact of high oil prices was felt, stronger sales strengthened the index. The sales DI rose 2.1 points to 9.4, reaching the level of fall 1991. On the other hand, reflecting higher stock costs, the DI for net profit drive further into the red, expanding 1.5 points to a negative 12.6. DIs for both manufacturing and non-manufacturing sectors improved, as did the DI for the outloook for business conditions for the fourth quarter.