Over 90% of local firms see Japan economy in recession phase: poll+

TOKYO, Oct. 18 Kyodo - More than 90 percent of locally renowned companies surveyed by Kyodo News
believe that the Japanese economy is in a ''recession phase,'' up sharply from
3 percent in November last year, due to worries about the global credit crisis
and high-flying raw material prices.
The survey, released Saturday, also showed that nearly 60 percent of
respondents believe business confidence in their regions is worse than in
others, while around 60 percent expect the nation's economic slump to continue
for a year or 18 months.
The survey, conducted from early to mid-October, covered 59 locally established
companies in 44 prefectures excluding Tokyo, Osaka and Aichi. Keiyo Gas Corp.
in Chiba Prefecture, Shiga Bank Ltd. in Shiga Prefecture, Watabe Wedding Corp.
in Kyoto Prefecture and Huis Ten Bosch Co. in Nagasaki Prefecture were among
the respondents.
According to the survey, 54 companies, or 92 percent of the total, said the
economy is in a recession phase. The 3 percent figure in the previous poll came
from a sample of 115 companies.
In the latest survey, 28 companies described the economy as ''gradually
retreating,'' 26 companies described it as ''in recession'' and four described
it as ''flat.''
The survey, which allowed multiple answers, also showed that 45 companies view
the U.S. economic slowdown and the country's wobbling financial system as a
negative factor for the Japanese economy. Thirty-four companies cited surges in
raw material prices and 22 companies cited slumping personal spending.
On the economic outlook, 19 companies said they expect the economy to pick up
as early as the latter half of 2009, while 14 others forecast that the economy
will not recover until 2011, according to the survey.
More than half of the respondents, 31 companies, said they believe economic
disparities between urban and regional areas or among regions will continue to
expand.
Only three companies said they rated highly the government's 11.7 trillion yen
emergency policy package, while 16 companies said they do not support it.
Thirty-six companies said they are not sure whether the package will be
sufficient to bolster the economy.
Asked what policy measures they would like to see, 31 companies said income tax
cuts and 29 companies said corporate tax cuts, according to the survey.
==Kyodo