More than two-thirds of Japanese companies are feeling less pain from a sales tax increase last month than from the previous increase five years ago, which precipitated a recession, a Reuters poll has found.
The results of the survey support the view of the government and Bank of Japan that the economy looks likely to avoid a drop in private consumption, thanks to steps taken to offset how the tax increase will affect the public.
Still, the overwhelming majority of Japanese companies remain cautious about boosting spending, with many planning to keep wages and hiring flat or even reduce them.