Quarterly Survey of Overseas Subsidiaries
Quarterly Survey of Japanese Business Activities(Period from October - December 1998)
16 April, 1999
Enterprise Statistics Department,
Research and Statistics Division,
Ministry of International Trade and Industry
- Outline of the survey
- Notes on the survey
- Notes on the report
- Changes to the content of the survey
- Response rate and yen/dollar exchange rate
- Turnover Inside/Outside Japan and Domestic Sales/Local Sales Overseas
- Trade Transactions
- Domestic and Overseas Employment
- Status of Overseas Subsidiaries by region
Domestic parent companies sales showed a 6.9% fall from the previous period last year, with exports decreasing by 5.9%, in addition to domestic sales dropping by 7.2%. The percentage fall continued to increase (5.0% from two periods agoR5.2% last period).
Sales of overseas subsidiaries fell by 5.7% from the same period last year in all periods, the first fall since beginning the survey. A decline was seen in all areas, with the exception of Europe, but was particularly noticeable in the case of NIES3, due to the influence of electrical machinery.
The sales forecast for January to June 1999, compared to the DI for the previous period (note 1), shows an increase in the percentage of expected fall in parent companies of 11 points (from -11.9 to -22.9). An increase of 5.0 points is expected in the case of overseas subsidiaries in total, compared to the previous period (from 12.1 to 17.1), a gain after a fall for two consecutive periods. What is more the percentage forecast of an increase in all areas rose.
The total of domestic parent companies exports fell by 5.9% compared to the same period in the previous year, the first fall since beginning the survey. A decline was seen in 8 industries during this period. The fall in the electrical machinery industry was particularly noticeable.
Exports directed to overseas subsidiaries also fell for the first time since beginning the survey, by 0.8%, and exports by local subsidiaries also fell by 3.5% compared to the same period in the previous year.
Exports by overseas subsidiaries to Japan, the phenomenon known as reverse exports, also fell for the 4th consecutive period. This period saw a dramatic drop of 19.8% from the same period in the previous year, centered around NIES3, China and other Asian countries.
The forecast for total exports between January and June 1999, when compared to the previous DI period, shows an increased predicted drop of 8.4 points (from -8.7 to -17.1) for parent companies exports. An increased fall is also forecast in exports, of 4.1 points (from -10.6 to -14.7). A 4.1 point (from -5.7 to -1.6) smaller decrease is predicted in the area of exports by overseas subsidiaries to Japan compared to the previous period.
Domestic parent companies recruitment fell by 1.8% compared to the same period in the previous year, a fall for the fifth consecutive period. A decrease was seen in all industries with the exception of the ceramics , stone and clay.
Hiring fell in overseas subsidiaries in the period between July and September (by 0.3% compared to the same period in the previous year), and this decreased to a rate of 1.8% in this period.
When comparing the employment forecast for January to June 1999 to the DI for the previous period shows a decrease in the expected fall by 5.9 points (from 40.8 to 34.9). In the case of overseas subsidiaries, the expected there is a decrease in the expected fall by 1.7 points compared to the previous period (from -4.0 to -2.3). However, in NIES3 and other regions, there is an increase in the expected drop.