~Concern over Rising Bankruptcies of Textile Companies~
Overview >> The trend of “higher stock prices and a weaker yen” accelerated after the new administration took the seat of power in January this year. While so-called export industries (such as the automobile sector) benefit from this trend, an adverse effect has spread to companies in those industries dependent upon importation, such as the food, textile and paper sectors. The food industry, in which most materials are imported, are starting to pass on their increased costs to consumers again due to the weaker yen. The textile industry, in which many companies have manufacturing bases in China and other Southeast Asian countries, has similar concerns. The full extent of the impact is not likely to be felt until after the summer, when textile companies begin the purchasing of fall and winter products in earnest. Now, however, we must closely monitor the impact and the industry trend.