- Statistics
- Quarterly Survey of Japanese Business Activities
- Quarterly Survey of Japanese Business Activities (April-June 1998)
- 5.Status of Overseas Subsidiaries by region
Quarterly Survey of Overseas Subsidiaries
5.Status of Overseas Subsidiaries by region
Regarding sales, total sales reached 9.1489 trillion yen (up 6.3% on the same quarter ofthe previous year). Continuing on the trend from the previous quarter, sales were up in all regions besides the ASEAN 4 (down 21.0% year-on-year) and the NIES 3 (down 7.7% year-on-year).
Exports to Japan, or so-called reverse imports, totaled 605.4 billion yen (down 5.2% year-on-year), decreasing for all regions except North America (up 12.0% year-on-year).
Looking at predictions for sales in the July-December of 1998 by relative DI, the share of overseas subsidiaries predicting a rise in sales fell for all regions except the others category (down 2.9 points relative to the previous term). As a result, the all regions total recorded the large drop of 10.3 points relative to the previous term (27.0 to 16.7).
(1) North America
- (i) Total and Local Sales
- Regarding total sales, increases have been recorded in 11 of the 13 industrial classifications (the exceptions being food & tobacco and textiles). Overall, sales were at 4.2227 trillion yen, an increase of 11.3% on the quarter of the previous year. Particularly large contributions were made by transport machinery (up 9.4% year-on-year) and electric machinery (up 11.7% year-on-year).
- Regarding local sales, increases have been recorded in 11 of the 13 industrial classifications (the exceptions being textiles and metals). Overall, local sales were 2.9934 trillion yen (up 10.1% year-on-year). The share of local sales in total sales was 70.9%, a -0.8 percentage point fall relative to the same quarter of the previous year.
- Looking at predictions for the July-December of 1998 by relative DI, the overall sales DI was -9.3 points (28.2 to 18.9), while that for local sales was -6.1 points (26.9 to 20.8), indicating that the number of companies predicting increases was down in both categories.
- (ii) Employment Conditions
- Increases in the number of employees in the electrical machinery and transport machinery classifications were the driving force behind a 5.9% increase year-on-year in employment overall, reaching 360,000 employees.
- Looking at predictions for the July-December of 1998 by relative DI, overall the figure is at -3.4 points (9.9 to 6.5), indicating a fall in the share of overseas subsidiaries predicting growth in employment.
- (iii) Reverse Imports
- Exports to Japan, or so-called reverse imports, were up in 9 different industrial classifications, including such categories as transport machinery, reaching 80.0 billion yen overall (up 12.0% on the same quarter of the previous year).
(2) Asean 4
- (i) Total and Local Sales
- Total sales were 883.2 billion yen (21.0% down on the same term of the previous year), marking the 3rd successive quarter of large year-on-year declines. Sales were down for 10 industrial classifications, an exception being industrial machinery (up 11.6% year-on-year).
- At 285.5 billion yen (35.1% down on the same quarter of the previous year), local sales recorded the 3rd successive quarter of large year-on-year declines. Local sales were down for 10 industrial classifications, an exception being precision machinery (up 9.9% year-on-year).
- Looking at predictions for the July-December of 1998 by relative DI, the overall figure was -6.5 points (15.4 to 8.9), with the share of overseas subsidiaries predicting increased sales down across 8 industrial classifications.
- (ii) Employment Conditions
- The number of employees totaled 410,000, a 1.1% increase on the same quarter of the previous year.
- Looking at predictions for the July-December of 1998 by relative DI, the overall figure was -5.8 points (2.3 to -3.5), indicating a decrease in the share of overseas subsidiaries anticipating higher employment, the first occasion under DI measurement that the share of overseas subsidiaries predicting decreases has been larger than the share predicting increases.
- (iii) Reverse Imports
- Exports from the overseas subsidiaries to Japan, or so-called reverse imports, were 229.8 billion yen, a 4.2% decrease on the same quarter of the previous year. Falls were recorded in 8 of the industrial classifications, particularly electrical machinery.
- Looking at predictions for the July-December of 1998 by relative DI, overall the figure was -2.0 points (4.4 to 2.4), the fourth successive term in which the share of overseas subsidiaries predicting increases has declined.
(3) Nies 3
- (i) Total and Local Sales
- Total sales were 784.0 billion yen, 7.7% down on the same quarter of the previous year. Sales were down for 8 industrial classifications, including electrical machinery Local sales were at 375.4billion yen, 1.0% up on the same quarter of the previous year.
- Looking at the figures by industrial classification, these sales were up for 6 categories, electrical machinery being a leading example.
- Looking at predictions for the July-December of 1998 by relative DI, that for total sales was -18.5 points (12.2 to -6.3), while that for local sales was -11.3 points (8.7 to -2.6), indicating a large drop in the share of overseas subsidiaries predicting increases in both categories with the DI figure turning negative.
- (ii) Employment Conditions
- The number of employees totaled 116,000, a 3.0% decrease on the same quarter of the previous year.
- Looking at predictions for the July-December of 1998 by relative DI, the overall figure was -2.2 points (-8.4 to -10.6), indicating a rise in the share of overseas subsidiaries anticipating lower employment.
- (iii) Reverse Imports
- Exports from the overseas subsidiaries to Japan, or so-called reverse imports, were 126.5 billion yen, an 11.1% decrease on the same quarter of the previous year. Falls were recorded in 8 of the industrial classifications, particularly electrical machinery.
- Looking at predictions for the July-December of 1998 by relative DI, overall the figure was -10.5 points (-1.5 to -12.0), indicating a large rise in the share of overseas subsidiaries predicting falls.
(4) China and Other Asian Countries
- (i) Total and Local Sales
- Total sales were 647.4 billion yen (13.9% up on the same quarter of the previous year), with sales increasing for 9 industrial classifications such as electrical machinery.
- At 246.9 billion yen (21.9% up on the same quarter of the previous year), local sales were up for 8 industrial classifications including electrical machinery.
- Looking at predictions for the July-December of 1998 by relative DI, the overall figure for total sales was -13.1 points (42.3 to 29.2), while that for local sales was -10.3 points (39.1 to 28.8), indicating a large fall in the share of overseas subsidiaries predicting higher sales in both of these categories.
- (ii) Employment Conditions
- The number of employees totaled 215,000, a 6.2% increase on the same quarter of the previous year. Looking at the figures by industry, employment was up for 10 industrial classifications excluding textiles.
- Looking at predictions for the July-December of 1998 by relative DI, the all over figure was -3.9 points (16.4 to 12.5), indicating a fall in the share of overseas subsidiaries predicting higher employment.
- (iii) Reverse Imports
- Exports from the foreign affiliates to Japan, or so-called reverse imports, were 144.6 billion yen, an 8.8% decline on the same quarter of the previous year. Falls were recorded in 8 of the industrial classifications, the fall for electrical machinery being particularly large.
- Looking at predictions for the July-December of 1998 by relative DI, overall the figure was -7.4 points (11.2 to 3.8), indicating a fall in the share of overseas subsidiaries predicting a rise in such trades.
(5) Europe
- (i) Total and Local Sales
- Total sales were 2.0412 trillion yen, a 15.1% increase on the same quarter of the previous year. Looking at the figures by industrial classification, sales were up for 7 industrial classifications, exceptions being food & tobacco and textiles. The contributions of transport machinery and electrical machinery to the increase in sales were particularly large.
- Local sales were 1.1702 trillion yen, an 18.3% increase on the same quarter of the preceding year. Looking at the figures by industrial classification, sales were up for 6 classifications.
- Regarding predictions for the July-December of 1998 by relative DI, the overall figure for sales was -14.3 points (35.5 to 21.2), while that for local sales was -12.6 points (36.1 to 23.5), indicating that the share of overseas subsidiaries predicting increases has decreased sharply for both of these categories.
- (ii) Employment Conditions
- The number of employees totaled 179,000, a 1.7% decrease on the same quarter of the previous year.
- Looking at predictions for the July-December of 1998 by relative DI, the overall figure was -0.8 points (10.9 to 10.1), indicating a fall in the share of overseas subsidiaries predicting an increase in employment.
- (iii) Reverse Imports
- Exports from the foreign affiliates to Japan, or so-called reverse imports, were 19.7 billion yen, a 7.4% decrease on the same quarter of the previous year. Falls were recorded in 6 of the industrial classifications, with the fall recorded by the chemical industry particularly large.
- Looking at predictions for the July-December of 1998 by relative DI, overall the figure was -6.0 points (-0.6 to 6.6), indicating a rise in the share of overseas subsidiaries predicting a fall in such trades.
Last Update: January 31, 2008