Business sentiment in Kyushu and Okinawa declined in January, marking the first downturn in three months, according to Teikoku Databank. The regional Economy Watchers’ Index (DI) dropped 1.2 points from the previous month to 46.4. The retail sector saw a particularly sharp decline, down 1.3 points to 41.6, as businesses struggled to pass rising material and labor costs onto consumers amid ongoing frugality. Companies expressed concerns over shrinking profit margins, with pessimism extending to three-month, six-month, and one-year forecasts. Source: Teikoku Data Bank
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