October 10, 2019 / 11:04 PM / 13 days ago

TABLE-Japan firms see tax hike hurting economy as Abenomics sputters

    TOKYO, Oct 11 (Reuters) - Japanese companies overwhelmingly believe the nation's longest postwar expansion is peaking, with
two-thirds expecting a sales tax hike this month to hurt the economy, a Reuters poll found.
    Below are the questions and answers to the poll conducted by Nikkei Research between Sept. 26-Oct. 7 for Reuters. Answers are
denoted in percentage points, while the poll and reply totals are represented in absolute terms.
 
 1. The Bank of Japan plans to reexamine economic and price developments at its next review on Oct 30-31. Should the BOJ ease
policy further?
 Sectors               Yes          No       Polled      Replied
 All                       43%         57%         504         226
 Manufacturers             47%         53%         254         111
 Non-Manufacturers         39%         61%         250         115
 2. If the BOJ eases policy further, will it cause more merits or demerits? (Pick one) 
 Sectors            More merit  More demerit  No impacts    Polled     Replied
 All                       30%           28%         42%         504         230
 Manufacturers             30%           26%         44%         254         112
 Non-Manufacturers         29%           31%         41%         250         118
 2a. If you see more merits, what will be the biggest benefit? (Pick one)
 Sectors            Promotion of capex  Promotion of    Rise in      Weak yen     Others     Polled      Replied
                    via low real rates   wage hike    stock prices                                      
 All                               43%           10%           22%         25%          0%         504          68
 Manufacturers                     44%            9%           21%         26%          0%         254          34
 Non-Manufacturers                 41%           12%           24%         24%          0%         250          34
 2b. If you see more demerits, what will be the most harmful effect? (Pick one)
 Sectors               Increase of      Lowering of   Financial,  Weakening of    Others     Polled      Replied
                    'zombie' companies   JGB market    property    financial                            
                     due to low rates     function      bubble    institutions                          
 All                               11%           22%         11%           54%          3%         504          65
 Manufacturers                     24%           28%          7%           41%          0%         254          29
 Non-Manufacturers                  0%           17%         14%           64%          6%         250          36
 3. What should the BOJ do with its 2% inflation target? (Pick one)
 Sectors              Should    Should be     Should    Should be    Polled      Replied 
                      raise       kept        lower      scrapped               
 All                        3%         53%         23%         21%         504         235
 Manufacturers              5%         51%         27%         17%         254         116
 Non-Manufacturers          0%         55%         20%         25%         250         119
 4. What will happen to Japan's economy after the October sales tax hike and next year on? (Pick one)
 Sectors            Expanding   Levelling   Falling into     Polled     Replied
                                   off        recession                
 All                        1%         58%            41%         504         241
 Manufacturers              1%         61%            38%         254         119
 Non-Manufacturers          2%         55%            43%         250         122
 4a. If you see the chance of recession, when would Japan's economy bottom out? (Pick one)
 Sectors             H1 2020     H2 2020    From 2021 on    Polled      Replied
 All                       18%         26%            56%         504          98
 Manufacturers             16%         24%            60%         254          45
 Non-Manufacturers         21%         26%            53%         250          53
 5. What kind of impacts will the sales tax hike cause to Japan's economy? (Pick one)
 Sectors            Push up economy  Push up economy  No impacts  Push down         Push down economy  Polled        Replied
                    considerably     somewhat                     economy somewhat  considerably                     
 All                             1%               4%         26%               60%                 9%  504           238
 Manufacturers                   1%               3%         28%               62%                 6%  254           116
 Non-Manufacturers               1%               4%         25%               58%                11%  250           122
 6. Have you been able to pass the cost of the 2%-point hike in the sales tax onto your goods and services?
 Sectors               Yes         No        Polled      Replied
 All                       71%         29%         504         236
 Manufacturers             68%         32%         254         117
 Non-Manufacturers         74%         26%         250         119
 
 (Reporting by Tetsushi Kajimoto; Editing by Kim Coghill)
  
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