At the same time, however, concerns are also spreading over credit uncertainties in Europe, an economic slowdown in China and the U.S., and a strong yen, among other issues, and the path toward full-scale economic recovery remains rocky. The diffusion index is calculated by subtracting the proportion of companies who say that the economy is bad from the proportion who say it is good. It has been predicted that the index in the tankan survey in June would come to minus 4, but exports boosted the figure for manufacturers to a positive level.
The president, speaking at an event in Tokyo to introduce new vehicles, added that the company also saw sales increases of 20 percent in North America, more than 20 percent in China, and more than 40 percent in Southeast Asia. In emerging countries, demand for flat-screen television sets has also surged, resulting in shortages of parts. As a result, Panasonic, which had planned sales of a 42-inch television set in June, has delayed release until September.
In the June tankan survey, major manufacturers indicated that they intended to increase capital spending in plants and equipment in fiscal 2010 by 3.8 percent compared with the previous year -- the first time in three years that the figure has been positive. The recovery, boosted by foreign demand and centered on export-related firms, is now also being seen among non-manufacturers. (Mainichi Daily)