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ECONOMY

82.5 pct of firms in Japan worried about pricey materials

  • December 14, 2021
  • , Jiji Press , 8:41 p.m.
  • English Press

Tokyo, Dec. 14 (Jiji Press)–A private survey showed Tuesday that 82.5 pct of companies in Japan see rising prices of crude oil and raw materials as a risk to the economy.

 

The proportion skyrocketed from 7.3 pct in the previous survey in November last year, according to the survey of companies on the economic outlook for 2022, released by credit research company Teikoku Databank Ltd.

 

The survey highlighted that the prolonged impact of supply constraints, such as rising prices of crude oil, lumber and steel, is increasing economic uncertainty.

 

In the survey, 93.9 pct of companies categorized as manufacturers of building materials, furniture, ceramics and earthenware products included rising crude oil and raw materials prices as a risk to the economy, with up to three options allowed. The proportion was the highest among all industry categories.

 

The proportion stood at 93.8 pct among chemical product makers and at 91.3 pct among the steel, nonferrous metals and mining sector.

 

One company said it anticipates a tougher business environment in fiscal 2022, which starts next April, due to higher materials prices, adding that the environment will worsen further if the novel coronavirus crisis is not contained.

 

“The government needs to start addressing higher materials prices and supply shortages immediately so as not to again allow a deterioration of the economy, which has been on a recovery track,” Teikoku Databank said.

 

The survey was conducted on 23,679 companies across Japan in November, receiving responses from 11,504 of them.

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