Eighty-seven percent of 111 major Japanese firms expect the economy to expand in 2015, showing optimism after the two consecutive quarters of contraction caused by last April's consumption tax hike, a survey says.
According to the survey, conducted in early and mid-December by Kyodo News, 97 companies expect the economy to expand, with 90 projecting moderate growth and seven strong growth. Thirteen expect the economy to level off and one made no prediction. None forecast a contraction. A breakdown of the types of companies surveyed was not provided.
A recovery in nonresidential investment was cited by 44 of the optimistic firms as a major factor in their assessments, while 40 cited the improving U.S. economy and 36 expected a rise in private consumption.