Quarterly Survey of Overseas Subsidiaries

Quarterly Survey of Japanese Business Activities(July-September 1998)

22 January, 1999
Enterprise Statistics Department,
Research and Statistics Division,
Ministry of International Trade and Industry

1. Outline of the Survey
2. Notes on the survey
3. Notes on the report
4. Changes to the content of the survey
5. Response rate and yen/dollar exchange rate

(1)Turnover Inside/Outside Japan and Domestic Sales/Local Sales Overseas

Sales were down at parent companies, but up overseas subsidiaries.
Outlook for domestic sales in October 1998-March 1999 is improving.

Sales of domestic parent companies decreased 5.4% compared to the same period of the previous year. This was because even though exports increased 4.6%, domestic sales dropped 8.2% on a year-on-year basis.
The sales decrease has been expanding in each period, as the decrease was 4.5% in the period before last and 5.0% in the previous period. On the other hand, total sales of overseas subsidiaries of Japanese parent companies were up by 6.7%. In ASEAN 4 and NIES 3, however, sales decreased 10.0% and 12.1% respectively continuing to decrease since the previous period. Sales in North America and Europe increased 13.2% and 12.5% respectively.

In light of comparison of DI between the current and previous period concerning sales (see note 1), the DI in October 1998-March 1999 is 11.1 points up from the previous period (from -22.7 to -11.6). This was the first time in five periods that the percentage of domestic parent companies forecasting a sales decline decreased. In regard to overseas subsidiaries of Japanese companies in total, the DI went down by 5.1 points from the previous period (from 17.2 to 12.1), continuing to fall from two periods before. In North America and Europe, however, the percentage of companies that forecast increase in sales is slightly up.

(2)Equipment Investments

Capital investment by overseas subsidiaries of Japanese parent companies was way down.

Direct foreign investment decreased 2.3% from the same period of the previous year partly because of a decrease in capital investment by the transport machinery industry.

Capital investment by overseas subsidiaries of Japanese companies (the amount of tangible fixed assets except land and hereinafter the same) plummeted by 38.9% compared to the same period of the previous year. Especially in ASEAN 4, NIES 3, and OTHER REGIONS, the figure dropped by more than 50% respectively.

In light of comparison of DI between the current and previous period regarding direct foreign investment, the DI in October 1998-March 1999 was 2.5 points down from -8.7 to -11.2. In regard to capital investment by overseas subsidiaries of Japanese companies in all regions, the DI was 9.9 points down from 15.1 to 5.2, meaning that the percentage of overseas subsidiaries forecasting an increase in capital investment is on the decline.

(3)Domestic and Overseas Employment

Recruitment by overseas subsidiaries of Japanese companies fell for the first time.

The number of workers newly employed by domestic parent companies fell by 2.2% compared to the same period of the previous year. The decrease has been expanding in each period like it fell by 1.3% in the period before last and 1.8% in the previous period. In view of business category, the number of employment decreased in all types of industries except precision machinery industry. Regarding overseas subsidiaries of Japanese companies, though the number was increasing, the increase had been on the decline in each period (4.0% in the period before last and 1.2% in the last period), and finally there was a decrease in the number for the first time in this period by 1.0% compared to the same period of the previous year.

In light of comparison of DI between the current and previous period for the employment prospect for October 1998-March 1999, the DI was 8.5 points down from the previous period from -32.3 to -40.8, which means that the percentage of domestic parent companies that have a negative outlook is increasing, contradictory to the outlook for sales. In regard to overseas subsidiaries of Japanese companies, the DI went down for the first time below zero, by 7.1 points from 3.0 to -4.1, meaning that the percentage of overseas subsidiaries with a positive outlook is decreasing.

(4)Trade Transactions

(5)Status of Overseas Subsidiaries by region

(6)Statistics(XLS/944KB)(Microsoft Excel)

E-Mail:qqcebh@meti.go.jp