TOKYO (Thomson Financial) - The percentage of corporate chiefs who think the Japanese economy is expanding fell to 64 percent in December from 79 percent in October, a survey by the Nikkei business daily showed on Thursday.
The survey covers corporate presidents and chairpersons from 134 companies.
The percentage of those who said the economy is expanding hovered in the 85-89 percent range from October 2005 to August of this year.
The economic diffusion index came to 56.7 in the latest survey, the lowest since April 2005 when the figure sank to 45.5, the poll showed.
The index is calculated by subtracting the proportion of those who said the economy is deteriorating from the percentage of those who said the economy is expanding.
The survey also shows that corporate chiefs are growing more aware of the risk of an economic slowdown, with 79 percent pointing to the negative impact of the US subprime mortgage crisis on the Japanese or the US economy, up 15 percentage points from the previous poll.
Some 99 percent said higher crude oil prices are a negative factor for the economy and 75 percent said they will cut profits.
On falls in housing starts caused by stricter construction rules introduced in June, 96 percent said it has a negative bearing on the economy while 52 percent said it adversely impacts earnings.
(1 US dollar = 114.24 yen)
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