Japan
Demand for loans among Japanese companies fell to a four-year low as a slowing economy and costlier materials made businesses reluctant to borrow.
An index of corporate loan demand dropped to minus 14 this month from minus 2 in April, the lowest since July 2004, the Bank of Japan said in a quarterly survey of loan officers in Tokyo today.
“This indicates sluggish growth in business investment, wages and hiring,'' said Yasuhide Yajima, a senior economist at NLI Research Institute in Tokyo. “Companies can't be confident about borrowing money amid the higher costs.''
The Bank of Japan cut its assessment of the economy last week, saying growth is slowing “further'' because of rising commodities prices pay day loans. Sentiment among large manufacturers fell to a four-year low in June and big companies said they expect earnings to drop for the first time since the 2001 recession.
Loan demand among large companies declined to minus 4 in July from 4 three months ago, today's survey showed. The index for mid-sized companies slid to minus 8 from 1, and for small businesses dropped to minus 16 from minus 4.
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