Sixty-six percent of 108 major Japanese companies surveyed expect Japan's economy to recover by the first half of 2010, indicating the view is spreading among businesses that the economy is hitting bottom, according to the results of the survey compiled by Kyodo News on Saturday.

The questionnaire survey, conducted between July 23 and 31, found that 71 of the 108 firms hold such a view as their performance is improving with production increasing after progress in inventory adjustments and cost-cutting efforts.

Of the 71 firms, 12 said the economy is already recovering, while 15 expect to see a recovery by the latter half of 2009 and 44 by the first half of 2010.