Meanwhile, the December Tankan shows that the increasing trend in current profits is expected to continue for the large manufacturing firms (excluding petroleum refinery) in fiscal 1997, while those in the nonmanufacturing sector (excluding electricity and gas) are projected to decline. Forecasts of current profit growth in both the manufacturing and nonmanufacturing sector have been revised downwards since the September survey.
In these circumstances, the business confidence DI for current conditions and on the outlook for principal firms in the manufacturing and nonmanufacturing sectors have both deteriorated. Current profits of small firms in both the manufacturing and nonmanufacturing sector are expected to decline in fiscal 1997. The business confidence DI has also deteriorated in most industries.