Taro Saito Japanese Quotations

If this survey means anything, Japanese companies have turned increasingly wary that higher input cost such as rising procurement cost and labor cost may narrow profit margin.

We believe that the underlying trend of exports to Asia remains solid and exports will continue to be a key growth driver for the overall Japanese economy.

With exports to China, demand -- which had slowed late last year -- is now seeing a solid rebound, and with firm demand in the US continuing, Japanese exports are most likely to maintain brisk gains in the near term.

As today's data confirmed a solid upturn in Chinese demand, which had slowed late last year and early this year, as well as firm demand in the United States, Japanese exports are most likely to maintain brisk gains in the near term.

As sales and profits continue to expand despite surging basic material prices, Japanese firms are willing to boost investment to deal with growing demand.

Amid the continued recovery of corporate activity, which reduces anxiety about job security, Japanese consumers seem to be increasingly willing to spend more, and that trend is most likely to be sustained going forward.