Japan Inc. sees profit growth slowing as manufacturers struggle

Forecasts dialed back to 2% uptick for fiscal 2022 on material costs, interest rates

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Against the backdrop of a global economic slowdown, the continued high price of raw materials is squeezing profitability. (Photo by Karina Nooka)

KENSHO MOTOWAKI, Nikkei staff writer

TOKYO -- Projected profit growth at Japanese companies is slowing, with net earnings forecast to grow 2% for the fiscal year ending March 31, down from 5% forecast in December.

Against the backdrop of a global economic slowdown, demand for smartphones and personal computers is declining worldwide, while the continued high price of raw materials squeezes profitability. Lowered guidance in the manufacturing sector contributed to the slower projected growth in profit.

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