RTRS Corporate Survey: Shrinking domestic market, worker shortage are biggest headaches

The latest Reuters survey on Japan Inc. showed that a majority of the firms feel shrinking domestic demand over the next three years remains their biggest worry.

Key findings from the survey:

Shrinking domestic demand is their biggest worry over the next three years while labor shortages are a close second, highlighting the difficulties of coping with a dwindling and rapidly aging population.

48% of japan firms plan to expand domestic capex over next 3 years, 46% to keep it at current rates

40% of japan firms say domestic demand is biggest headache over next 3 years, 34% labour shortage is main concern

12% of japan firms aim to boost china investment over next 3 years, only 18% aim to lift us investment