The latest Reuters Corporate Survey shows:
- 70 pct of Japan companies see no decisive escape from deflation in foreseable future, up from 48 pct in the January survey
- 79 pct of Japan companies worried consumer prices could return to deflation this year or next
Comments from the survey respondents along the lines that
- Demand is not on an upward trend
- Household spending is not rising because base pay is not rising
- It has become difficult for companies to lift prices